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Economics MCQs: Test Your Knowledge and Boost Your Understanding

Are you ready to dive into some thought-provoking Economics MCQs? Our comprehensive collection of Economics MCQs is designed to challenge and enhance your understanding of key economic concepts. Whether you’re preparing for exams, looking to improve your knowledge for professional growth, or just interested in economic theories and applications, our Economics MCQs offer valuable insights and practice. Explore topics ranging from market dynamics and economic policies to global financial systems and microeconomics.

General Knowledge (GK) MCQs: Expand Your Knowledge Horizons

In addition to Economics MCQs, we provide a diverse range of General Knowledge (GK) MCQs to test and broaden your overall knowledge. Our GK MCQs cover a variety of subjects, ensuring you have a well-rounded grasp of general knowledge. Perfect for quiz enthusiasts, students, and anyone eager to learn more about the world, our General Knowledge (GK) MCQs are designed to keep you informed and engaged.

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Which term refers to the situation where a firm’s actions affect the well-being of others who are not involved in the market transaction?

A. Externalities
B. Public Goods
C. Market Failures
D. Private Costs

Answer: Externalities

Which term refers to the percentage change in the quantity demanded of a good due to a percentage change in income?

A. Income Elasticity of Demand
B. Price Elasticity of Demand
C. Cross-Price Elasticity
D. Price Elasticity of Supply

Answer: Income Elasticity of Demand

Which term describes the economic concept where total revenues are equal to total costs, resulting in no profit or loss?

A. Break-Even Point
B. Profit Maximization
C. Revenue Maximization
D. Loss Minimization

Answer: Break-Even Point

Which term describes the practice of setting interest rates below the natural rate of interest to stimulate economic activity?

A. Expansionary Monetary Policy
B. Monetary Tightening
C. Fiscal Expansion
D. Quantitative Easing

Answer: Expansionary Monetary Policy

Which economic term refers to the amount of output that can be produced with a given amount of inputs?

A. Productivity
B. Efficiency
C. Output
D. Capacity

Answer: Productivity

Which term refers to a government-imposed limit on the quantity of a good that can be imported into a country?

A. Quota
B. Tariff
C. Subsidy
D. Embargo

Answer: Quota

Which economic principle suggests that the more a person consumes of a good, the less additional satisfaction they get from consuming an extra unit?

A. Law of Diminishing Marginal Utility
B. Law of Increasing Returns
C. Law of Demand
D. Law of Supply

Answer: Law of Diminishing Marginal Utility

Which economic term refers to the benefit that a consumer receives from purchasing a good or service at a price lower than the maximum price they are willing to pay?

A. Consumer Surplus
B. Producer Surplus
C. Economic Surplus
D. Total Surplus

Answer: Consumer Surplus

Which term refers to the total market value of all final goods and services produced within a country during a specific period?

A. Gross Domestic Product (GDP)
B. Net Domestic Product (NDP)
C. Gross National Product (GNP)
D. Net National Product (NNP)

Answer: Gross Domestic Product (GDP)