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

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

B) Labor

A) Money

C) Imports

D) Exports

2. What does the production possibility curve represent?

A) The minimum output of two goods

B) The maximum output of two goods

D) The total output of a single good

C) The average output of two goods

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

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

C) (Labor force / Total population) × 100

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

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

A) Demand-pull inflation

D) Hyperinflation

B) Cost-push inflation

C) Built-in inflation

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

B) Socialism

A) Capitalism

D) Inflationary economy

C) Mixed economy

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

B) Altering the money supply

D) Changing reserve requirements

C) Government spending on infrastructure

A) Changing the interest rate

8. What is Gross Domestic Product (GDP)?

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

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

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

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

D) Monopoly

B) Economic equilibrium

C) Perfect competition

A) Market failure

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

C) Single seller

D) Free entry and exit of firms

B) Product differentiation

A) Few sellers

11. What is the basic economic problem?

B) Inflation

C) Scarcity

D) Deflation

A) Unemployment

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

D) Quantity supplied / Quantity demanded

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

MCQ | QUIZ | Economics

Total Questions: 12
Total Time: 12 Min
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