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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 a situation where the economic resources are allocated based on market demand and supply without government intervention?

A. Market Economy
B. Command Economy
C. Mixed Economy
D. Traditional Economy

Answer: Market Economy

Which term refers to a market structure with many firms producing similar but not identical products?

A. Monopolistic Competition
B. Perfect Competition
C. Oligopoly
D. Monopoly

Answer: Monopolistic Competition

Which term refers to the situation where a firm can set the price of a good or service rather than accepting the market price?

A. Price Maker
B. Price Taker
C. Market Share
D. Market Power

Answer: Price Maker

Which term describes the phenomenon where increased production of a good leads to increased average costs 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 economic principle states that in the long run, the economy will return to its natural level of output after a temporary shock?

A. Long-Run Neutrality of Money
B. Short-Run Trade-Off
C. Natural Rate of Unemployment
D. Ricardian Equivalence

Answer: Long-Run Neutrality of Money

Which term describes the concept that as the quantity of a good consumed increases, the additional satisfaction derived from each additional unit decreases?

A. Diminishing Marginal Utility
B. Increasing Marginal Utility
C. Constant Marginal Utility
D. Negative Marginal Utility

Answer: Diminishing Marginal Utility

Which term describes the difference between the amount a consumer is willing to pay for a good and the amount actually paid?

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

Answer: Consumer Surplus

Which economic term refers to the total amount of goods and services produced by a country’s residents, regardless of their location?

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

Answer: Gross National Income (GNI)

Which term refers to a government policy designed to reduce or eliminate budget deficits through higher taxes or reduced spending?

A. Austerity
B. Expansionary Policy
C. Quantitative Easing
D. Stimulus Package

Answer: Austerity