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

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

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

D) Quantity supplied / Quantity demanded

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

C) Total revenue / Quantity demanded

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

A) Changing the interest rate

D) Changing reserve requirements

C) Government spending on infrastructure

B) Altering the money supply

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

C) Built-in inflation

A) Demand-pull inflation

B) Cost-push inflation

D) Hyperinflation

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

D) Monopoly

A) Market failure

C) Perfect competition

B) Economic equilibrium

5. What does the production possibility curve represent?

C) The average output of two goods

D) The total output of a single good

B) The maximum output of two goods

A) The minimum output of two goods

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

A) Few sellers

C) Single seller

D) Free entry and exit of firms

B) Product differentiation

7. What is the main objective of monetary policy?

C) Decrease unemployment benefits

A) Regulate the economy’s money supply

B) Increase government spending

D) Reduce income inequality

8. What is Gross Domestic Product (GDP)?

C) The total value of goods and services produced within 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

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

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

A) Capitalism

C) Mixed economy

D) Inflationary economy

B) Socialism

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

D) Exports

B) Labor

A) Money

C) Imports

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

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

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

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

C) (Labor force / Total population) × 100

12. What is the basic economic problem?

C) Scarcity

B) Inflation

A) Unemployment

D) Deflation

MCQ | QUIZ | Economics

Total Questions: 12
Total Time: 12 Min
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