MCQS ECONOMICS Very Usefull # Mcqs # Economics # Usefull #New For #NTS and #AJKPSC

1.      The Fundamental concept of Economics about resources is that the resources are

a.       Equally Ditributed     b. Unequally Distributed      c. Scarce d. Unlimited

2.      Consider a world without scarcity of resources. Then what would be the consequences

a.       All Prices would be zero b. Market would be Unnecessary

C. Economics would be No longer useful Subject    D. All of these

3.  who is consider the Founder of Micro Economics

a. Adam Smith  b. john Keynes c. Friedrich     d. Friedman

4.  who is consider the Founder of Macro Economics

a. Adam Smith  b. john Keynes c. Friedrich     d. Friedman

5.  When Analyzing the impact of a Variable on Economic system, the other things

a.  Must be kept constant    b. must also analyzed

c. must not be taken into consideration d. none of these

6.  Inputs are Combined with technology to produce outputs. The Fundamentals inputs are

a. Land & Labour b. Land & Capital    c. Land Labour & Capital d. Land, Labor, capital & Investment

7.  Goods Produced to produce yet other goods is called

a. Final goods b. Capital c. Investment d. Resources

8.  Which Economic term is used to present inequality in income distribution ?

a. GDP     b. GNP     c. Gini    d. HDI

9.  The Value of the good or service forgone by choosing another investment is Called

a. Opportunity cost     b. purchasing power    c. Disposable income d. CPI

10.    The Central Role of Markets is to determine the

A. Quality of Goods b. Quantity of Goods c. Level of Income  d. Price of Goods

11.  The Branch of economics concerned with overall performance of the economy is known as

a. Micro Economics b. Macro Economics      c. Econometrics    d. None of these

12.    The branch of economics concerned with the use of statistical methods to obtain empirical results for Economic relation is known as

a.         Micro Economics b. Macro Economics      c. Econometrics    d. None of these

13.  The Branch of Economics concerned with the behavior of markets , firms and household Is known as a. Micro Economics b. Macro Economics c. Econometrics                              d. None of these

14.  An Economy is producing efficiently when no individuals economic welfare can be improved unless. A. Supply is increased                                     b. Demand is increased c. Some one else is Improved d. Someone else is made worse off

15.  Taxes are Used to discourage.............. Of a Commodity.

A. Consumption  b. Production  c. Saving  d. Inflation

16.    Subsidies are used to Encourage............. of a Commodity.

A. Consumption b. Production  c. Saving  d. Infltion

17.  Which from the following economic resources cannot be converted into commodity?

a. Land b. labour  c. Capital d. All of these

18.  which from the following are features of a modern economy?

a. Specialization b. Division of Labour c. Financial Market d. All of these

19.  When No firm or consumer is large enough to affect the market price, the market is assumed to have a. Perfect Competition                                     b. Imperfect Competition

c. No Competition  d. None of these

20.  Which from the following are the results of imperfect competition in the markets?

a. Monopolies b. Externalities c. Public Goods d. All of these

21.  when one event occurred before another event, the fallacy in economic reasoning that the First event caused the second event is called

a.       The post hoc Fallacy b. Failure to hold other thing constant c. The Fallacy of Composition      d. Normative Fallacy

22.  when we assume that what is true for the part is also true for the whole, we are

Committing     a. The post hoc Fallacy b. Failure to hold other thing constant    c.

The Fallacy of Composition    d. Normative Fallacy

23.  The three Fundamental economic problems every human society must confront an resolve Are a. what How & when b. what where & when c. what how& for whom

d. How where & for whom

24.  The three Fundamental economic problems what, How & For whom are solved by

a. Supply b. Demand c. Consumption d. Markets

25.  Fiscal Policy Consist of Government’s a. Revenue and Taxation

b. Taxation and Credit Control c. Expenditure and Taxation d. None of these

26.  The Maximum quantity of goods that can be efficiently produced by an economy using Its scarce resources and available Technology is called a. The Supply Curve

b. Demand curve c. Production possibility Frontier d. The Supply demand Equilibrium

27.  which economic term is used to measure the overall performance of an economy

a. GDP b. GNP c. Gini   d. HDI

28.  Productive efficiency occurs when an economy can not produce …… of one good Without producing ………of another.

a.         More, More b. More , less c. Less, Less d. None of these

29.  The Concept of invisible hand in the organization of supply and demand in a well functioning market mechanism refers to the a. Self Regulating Economy

b.      Government Controlled Economy c. Command Economy d. Socialism

30.  The increase in economic integration among nations is termed as

a.  Specialization 2. Market Economy c. Globalization  d. Equilibrium

31.  The Price Elasticity of demand is the % change in……. demanded divided by the

% change in ………            a. Supply, Price    b. Quantity, Price  c. Price, Supply

32.  When price of a commodity increased by 3%, the QD decreased by 5%. The Quantity Is said to have .  a. Price Elastic Demand b. Price Elastic Supply

c.       Price Inelastic demand d. Price inelastic Supply

33.  When price of a commodity increased by 5%, the QD decreased by 3%. The Quantity Is said to have .  a. Price Elastic Demand b. Price Elastic Supply

c.Price Inelastic demand d. Price inelastic Supply

34.  When price of a commodity increased by 4%, the QD decreased by 4%. The Quantity Is said to have . a. Unit Elastic Demand b. Unit Elastic supply c. High Supply d. none

35.  The term recession refers to the a. High Employment b. High Unemployment

c. High Supply and Demand d. Low supply and demand

36.  What from the following measures a govt. can take to reduce inequality in the Distribution of Income.                             A. progressive Taxation b. Transfer Payments

d.      Subsidize consumption of low income groups    c. All of these

37.  Which from the Following is not from capital

a. Clothing b. Machines c. Highways d. buildings

38.  The Economic term used to rank countries according to Human Development is

a. GDP per Capita b. GNP c. Gini d.HDI

39.  The Ultimate goal of economic science is to

a.  Improve the living Standard of people b. obtain Highest possible GDP

c. minimize the unemployment d. Obtain Equilibrium b/w Inflation and Employment

40.  In Which from the following question, we can only examine the likely consequences Of alternative policies, and the answer can be resolved only by discussions?

a.       Do Higher Rate of Interest Slow the Economy c. Should a Country lower tariff on Imports d. Do Higher Rate of Interest lower Inflation

b.      Does Higher employment raise the inflation