Multiple Choice Questions (MCQ) with Answers on Economics
1-Which form of monopoly regulation is most advantageous for the consumer?
(A) Lump sum tax
(B) Price Control
(C) Per Unit tax
(D) All the above are equally advantageous
2-Index number is a type of
(A) Correlation
(B) Average
(C) Dispersion
(D) None of the above
3-Capital stock includes
(A) Inventories of raw materials
(B) Machinery
(C) Industrial plants
(D) All of the above
4-Balance of current account includes
(A) Balance of unrequited transfers
(B) Balance of trade
(C) Balance of invisibles
(D) All of the above
5-Selling a product in a foreign market at a lower price than in home market is called
(A) Subsidy
(B) Cartel
(C) Dumping
(D) None of the above
6-Increase in unemployment and inflation is called
(A) Deflation
(B) Stagflation
(C) Reflation
(D) Hyper-inflation
7-Relation between income and consumption is called
(A) Consumption function
(B) Saving function
(C) Accelerator
(D) Investment function
8-Depreciation is loss of value of
(A) Consumer goods
(B) Machinery
(C) Final goods
(D) Stock of inventory
9-The ‘Reciprocal Demand Theory’ of international trade is based on
(A) Money supply
(B) Opportunity cost
(C) Absolute cost difference theory
(D) Comparative cost advantage theory
10-In case of perfect competition, elasticity will be
(A) Infinity
(B) 3
(C) 2
(D) 0
11-The total area under the demand curve of the good measures
(A) Producer’s surplus
(B) Consumer’s surplus
(C) Total utility
(D) Marginal Utility
12-The phenomenon of structural unemployment is
(A) Cyclical
(B) Seasonal
(C) Chronic
(D) Temporary
ANSWERS:
1-(B), 2-(B), 3-(D), 4-(D), 5-(C), 6-(B), 7-(A), 8-(B), 9-(D), 10-(A), 11-(C), 12-(D)