Economics mcqs with answers pdf free download : Here we share free pdf for economics kindly download and share thid post with your friends
some multiple-choice questions in economics along with their answers:
In a market economy, the price of a good is determined by:
a) Government regulations b) Supply and demand c) Production costs d) Consumer preferences
Answer: b) Supply and demand
The law of demand states that:
a) As price increases, quantity demanded increases b) As price decreases, quantity demanded increases c) As price increases, quantity demanded decreases d) Price and quantity demanded are unrelated
Answer: c) As price increases, quantity demanded decreases
In economics, the term “opportunity cost” refers to:
a) The cost of producing a good or service b) The monetary cost of a good or service c) The value of the next best alternative foregone d) The total cost of inputs used in production
Answer: c) The value of the next best alternative foregone
The GDP (Gross Domestic Product) of a country measures:
a) The total value of all goods and services produced within a country’s borders in a given period b) The total value of all exports minus imports in a given period c) The total value of all goods and services consumed by households in a given period d) The total value of all investments made by businesses in a given period
Answer: a) The total value of all goods and services produced within a country’s borders in a given period
In a perfectly competitive market, a firm:
a) Has the ability to influence the market price b) Can earn economic profit in the long run c) Produces a unique product or service d) Takes the market price as given and has no market power
Answer: d) Takes the market price as given and has no market power
Inflation is defined as:
a) An increase in the overall level of prices in the economy b) A decrease in the overall level of prices in the economy c) A decrease in the value of money d) An increase in the value of money
Answer: a) An increase in the overall level of prices in the economy
Fiscal policy refers to:
a) The control of the money supply by the central bank b) Government policies related to taxation and government spending c) Policies aimed at controlling inflation d) Policies aimed at promoting international trade
Answer: b) Government policies related to taxation and government spending
Comparative advantage is based on the concept of:
a) Producing goods and services at the lowest cost b) Producing goods and services at the highest quality c) Producing goods and services with the highest demand d) Producing goods and services with the lowest opportunity cost
Answer: d) Producing goods and services with the lowest opportunity cost
The law of diminishing marginal utility states that:
a) The more of a good consumed, the higher the total utility b) The more of a good consumed, the lower the total utility c) The more of a good consumed, the higher the marginal utility d) The more of a good consumed, the lower the marginal utility
Answer: d) The more of a good consumed, the lower the marginal utility
The World Trade Organization (WTO) is an international organization that:
a) Regulates global financial markets b) Facilitates international cooperation on climate change c) Promotes free trade and resolves trade disputes among member countries
