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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.
Which economic term describes a situation where the benefits of a good or service are enjoyed by individuals who do not pay for it?
A. Free Rider Problem
B. Market Failure
C. Public Good
D. Externality
Answer: Free Rider Problem
Which term refers to the phenomenon where an increase in the quantity of a good produced leads to a decrease in the average cost per unit?
A. Economies of Scale
B. Diseconomies of Scale
C. Constant Returns to Scale
D. Increasing Returns to Scale
Answer: Economies of Scale
Which term refers to the cost incurred when the firm’s output exceeds its optimal level of production, leading 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 effect of a price change on the quantity demanded of a good, assuming all other factors remain constant?
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 overall increase in the general price level of goods and services in an economy over time?
A. Inflation
B. Deflation
C. Disinflation
D. Stagflation
Answer: Inflation
Which term refers to the scenario where the supply of a good or service exceeds the demand at the prevailing price?
A. Surplus
B. Shortage
C. Equilibrium
D. Market Failure
Answer: Surplus
Which term describes the phenomenon where an increase in government spending results in a decrease in private sector spending due to higher interest rates?
A. Crowding Out
B. Crowding In
C. Economic Stimulus
D. Market Failure
Answer: Crowding Out
Which economic principle suggests that a reduction in tax rates can lead to an increase in economic activity and, eventually, higher tax revenue?
A. Laffer Curve
B. Keynesian Economics
C. Monetarism
D. Classical Economics
Answer: Laffer Curve
Which term refers to the economic model where firms compete by producing differentiated products rather than identical ones?
A. Monopolistic Competition
B. Perfect Competition
C. Oligopoly
D. Monopoly
Answer: Monopolistic Competition