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

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

C) Government spending on infrastructure

A) Changing the interest rate

D) Changing reserve requirements

B) Altering the money supply

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

A) Market failure

C) Perfect competition

B) Economic equilibrium

D) Monopoly

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

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

D) Quantity supplied / Quantity demanded

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

C) Total revenue / Quantity demanded

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

B) Socialism

D) Inflationary economy

A) Capitalism

C) Mixed economy

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

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

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

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

C) (Labor force / Total population) × 100

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

A) Money

D) Exports

B) Labor

C) Imports

7. What is the main objective of monetary policy?

D) Reduce income inequality

B) Increase government spending

A) Regulate the economy’s money supply

C) Decrease unemployment benefits

8. What does the production possibility curve represent?

A) The minimum output of two goods

D) The total output of a single good

B) The maximum output of two goods

C) The average output of two goods

9. What is Gross Domestic Product (GDP)?

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

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

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

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

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

A) Few sellers

D) Free entry and exit of firms

C) Single seller

B) Product differentiation

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

A) Demand-pull inflation

D) Hyperinflation

C) Built-in inflation

B) Cost-push inflation

12. What is the basic economic problem?

C) Scarcity

A) Unemployment

B) Inflation

D) Deflation

MCQ | QUIZ | Economics

Total Questions: 12
Total Time: 12 Min
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