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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 measure of the responsiveness of quantity demanded to a change in price?

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

Answer: Price Elasticity of Demand

Which economic term refers to the situation where the price of a good or service is determined by the interaction of supply and demand in a market?

A. Market Equilibrium
B. Market Failure
C. Market Price
D. Price Control

Answer: Market Equilibrium

Which term describes the situation where an increase in the production of a good leads to an increase in the cost per unit due to inefficiencies?

A. Diseconomies of Scale
B. Economies of Scale
C. Constant Returns to Scale
D. Increasing Returns to Scale

Answer: Diseconomies of Scale

Which term describes the impact of changes in interest rates on the level of investment spending by firms?

A. Investment Demand
B. Interest Rate Effect
C. Monetary Policy
D. Crowding Out

Answer: Interest Rate Effect

Which economic term refers to a situation where the government provides financial support to domestic industries to enhance their competitiveness?

A. Subsidy
B. Tariff
C. Quota
D. Trade Protectionism

Answer: Subsidy

Which term refers to the situation where an increase in government spending leads to a rise in aggregate demand and economic activity?

A. Fiscal Stimulus
B. Monetary Expansion
C. Supply-Side Economics
D. Crowding Out

Answer: Fiscal Stimulus

Which term describes the total value of all goods and services produced by a country’s citizens, regardless of where they are located?

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

Answer: Gross National Product (GNP)

Which term refers to the tax imposed on the income earned by individuals or businesses?

A. Income Tax
B. Sales Tax
C. Property Tax
D. Excise Tax

Answer: Income Tax

Which term refers to a situation where a firm produces a good or service at a lower average cost as output increases?

A. Economies of Scale
B. Diseconomies of Scale
C. Constant Returns to Scale
D. Increasing Returns to Scale

Answer: Economies of Scale