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

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

B) Altering the money supply

D) Changing reserve requirements

A) Changing the interest rate

C) Government spending on infrastructure

2. What is Gross Domestic Product (GDP)?

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

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

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

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

A) Money

C) Imports

D) Exports

B) Labor

4. What is the basic economic problem?

C) Scarcity

A) Unemployment

B) Inflation

D) Deflation

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

B) Economic equilibrium

C) Perfect competition

D) Monopoly

A) Market failure

6. 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

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

A) Capitalism

B) Socialism

C) Mixed economy

D) Inflationary economy

8. What does the production possibility curve represent?

B) The maximum output of two goods

C) The average output of two goods

A) The minimum output of two goods

D) The total output of a single good

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

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

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

C) (Labor force / Total population) × 100

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

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

C) Built-in inflation

B) Cost-push inflation

D) Hyperinflation

A) Demand-pull inflation

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

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

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

D) Quantity supplied / Quantity demanded

C) Total revenue / Quantity demanded

12. 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

MCQ | QUIZ | Economics

Total Questions: 12
Total Time: 12 Min
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