+2 | Bachelors | Masters | Quiz | MCQ | Multiple Choice Questions

1. Which of the following is an example of fiscal policy?

C) Government spending on infrastructure

D) Changing reserve requirements

A) Changing the interest rate

B) Altering the money supply

2. What is the formula for calculating the price elasticity of demand?

C) Total revenue / Quantity demanded

B) Percentage change in price / Percentage change in quantity demanded

A) Percentage change in quantity demanded / Percentage change in price

D) Quantity supplied / Quantity demanded

3. What is the main objective of monetary policy?

D) Reduce income inequality

B) Increase government spending

C) Decrease unemployment benefits

A) Regulate the economy’s money supply

4. What is the formula for calculating the unemployment rate?

B) (Number of employed / Labor force) × 100

C) (Labor force / Total population) × 100

D) (Total population / Number of unemployed) × 100

A) (Number of unemployed / Labor force) × 100

5. What is Gross Domestic Product (GDP)?

D) The total value of goods and services imported by a country

A) The total value of goods and services produced by a country’s citizens

B) The total value of goods and services consumed in a country

C) The total value of goods and services produced within a country

6. What is the basic economic problem?

C) Scarcity

D) Deflation

A) Unemployment

B) Inflation

7. What is the term for a situation where the market does not allocate resources efficiently?

C) Perfect competition

D) Monopoly

A) Market failure

B) Economic equilibrium

8. Which of the following is a characteristic of a perfectly competitive market?

A) Few sellers

D) Free entry and exit of firms

B) Product differentiation

C) Single seller

9. Which type of inflation is caused by an increase in the cost of production?

D) Hyperinflation

B) Cost-push inflation

A) Demand-pull inflation

C) Built-in inflation

10. Which of the following is a factor of production?

A) Money

C) Imports

B) Labor

D) Exports

11. What does the production possibility curve represent?

A) The minimum output of two goods

C) The average output of two goods

D) The total output of a single good

B) The maximum output of two goods

12. Which of the following is not a type of economic system?

B) Socialism

C) Mixed economy

A) Capitalism

D) Inflationary economy

MCQ | QUIZ | Economics

Total Questions: 12
Total Time: 12 Min
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