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

1. 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

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

D) Inflationary economy

B) Socialism

C) Mixed economy

A) Capitalism

3. 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

4. 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

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

D) Exports

C) Imports

B) Labor

A) Money

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

A) Changing the interest rate

D) Changing reserve requirements

B) Altering the money supply

C) Government spending on infrastructure

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

C) Built-in inflation

D) Hyperinflation

A) Demand-pull inflation

B) Cost-push inflation

8. What does the production possibility curve represent?

A) The minimum output of two goods

C) The average output of two goods

B) The maximum output of two goods

D) The total output of a single good

9. What is the basic economic problem?

B) Inflation

C) Scarcity

A) Unemployment

D) Deflation

10. What is Gross Domestic Product (GDP)?

D) The total value of goods and services imported by 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

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

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

C) (Labor force / Total population) × 100

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

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

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

12. What is the main objective of monetary policy?

D) Reduce income inequality

A) Regulate the economy’s money supply

C) Decrease unemployment benefits

B) Increase government spending

MCQ | QUIZ | Economics

Total Questions: 12
Total Time: 12 Min
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