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

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

D) Monopoly

B) Economic equilibrium

A) Market failure

C) Perfect competition

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

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

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

C) (Labor force / Total population) × 100

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

3. What is the main objective of monetary policy?

B) Increase government spending

C) Decrease unemployment benefits

A) Regulate the economy’s money supply

D) Reduce income inequality

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

B) Product differentiation

D) Free entry and exit of firms

A) Few sellers

C) Single seller

5. What does the production possibility curve represent?

B) The maximum output of two goods

C) The average output of two goods

D) The total output of a single good

A) The minimum output of two goods

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

C) Built-in inflation

D) Hyperinflation

B) Cost-push inflation

A) Demand-pull inflation

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

C) Total revenue / Quantity demanded

D) Quantity supplied / Quantity demanded

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

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

8. 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

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

D) Inflationary economy

B) Socialism

C) Mixed economy

A) Capitalism

10. What is Gross Domestic Product (GDP)?

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

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

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

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

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

B) Labor

D) Exports

C) Imports

A) Money

12. What is the basic economic problem?

A) Unemployment

C) Scarcity

B) Inflation

D) Deflation

MCQ | QUIZ | Economics

Total Questions: 12
Total Time: 12 Min
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