introduction to economics MCQs – Page 4

Practise focused introduction to economics questions with marked answers for exam preparation and subject revision.

introduction to economics Mcqs
61. Which of the following is a normative statement in economics ?
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A. More spending by the government reduces poverty

B. Higher taxes lead to less desire to work

C. The Pakistans economy is growing fast relative to other SAARC members

D. The government should concentrate on reducing unemployment
62. A recession is ?
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A. a period of very rapidly declining prices.

B. a period of declining unemployment

C. a period during which aggregate output declines.

D. a period of declining prices.

63. Which of the following is not one of the basic economic s ?
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A. How to produce

B. Who to produce for

C. How to maximize economic growth

D. What to produce

64. Which of the following situations describes the greatest market power ?
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A. a students impact on college tuition

B. Microsofts impact on the price of desktop operating systems

C. a farmers impact on the price of corn

D. Subarus impact on the price f cars

65. The sacrifice involved when you choose a particular course of action is called the?
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A. Producer cost

B. Alternative

C. Consumer cost

D. Opportunity cost
66. The study of inflation is part of ?
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A. macroeconomics.

B. descriptive economics

C. normative economics

D. microeconomics

67. Human wants are_______________?
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A. Likely to decrease over time

B. Limited

C. Always fixed

D. Unlimited
68. Trade-offs are required because wants are unlimited, and resources are ?
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A. unlimited

B. Efficient

C. economical

D. Scarce
69. Periods of less than full employment corresponds to _________________ ?
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A. points outside the production possibility curve

B. points inside the production possibility curve.

C. either points inside or outside the production possibility curve.

D. points on the production possibility curve

70. A real value can be derived from a nominal value by ?
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A. adjusting for data collection errors

B. adjusting for population changes

C. adjusting or changes in prices

D. adjusting for changes over time

71. Aggregate supply is the total amount ?
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A. of goods and services produced in an economy.

B. of products produced by a given industry.

C. of labor supplied by all households.

D. Produced by the government.

72. A mixed economy ?
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A. Has supply but not demand

B. Has market forces and government intervention

C. Has supply and demand

D. Has demand but not supply