(A) price-elastic demand
(B) price-elastic supply
(C) price-inelastic demand
(D) price-inelastic supply
The answer is: (A) price-elastic demand
Category: Economics MCQs FPSC NTS PPSC Past Papers Economy Test Questions
Economics MCQs quiz test questions with answers. Basic economics, microeconomics, macroeconomics, managerial economics and world economy multiple choice questions and answers.
When price of a commodity increased by 5%, the quantity demanded 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
The answer is: (C) price-inelastic demand
When price of a commodity decreased by 4%, the quantity demanded increased by 4%. The quantity is said to have
(A) unit-elastic demand
(B) unit-elastic supply
(C) price equilibrium
(D) supply-demand equilibrium
The answer is: (A) unit-elastic demand
The term “recession” refers to the
(A) high employment
(B) high unemployment
(C) high supply and demand
(D) low supply and demand
The answer is: (B) high unemployment
What from the following measures a government can take to reduce inequality in the distribution of income?
(A) Progressive taxation
(B) Transfer payments
(C) Subsidize consumption of low-income groups
(D) All of the above
The answer is: (D) All of the above
Which from the following is NOT among capital?
(A) Clothing
(B) Machines
(C) Highways
(D) Buildings
The answer is: (A) Clothing
Capital is one of the three fundamental inputs called factors of production which is a produced and durable input and is itself an output of an economy. Clothing is not among capital.
The economic term used to rank countries according to human development is
(A) GDP Per Capita
(B) GNP
(C) Gini
(D) HDI
The answer is: (D) HDI
The ultimate goal of economic science is to
(A) improve the living standard of people
(B) obtain the highest possible GDP
(C) minimize the unemployment
(D) obtain equilibrium between inflation and employment
The answer is: (A) improve the living standard of people
In which from the following questions, we can only examine the likely consequences of alternative policies, and the answer can be resolved only by discussions?
(A) Do higher interest rates slow the economy?
(B) Do higher interest rates lower inflation?
(C) Should a country lower tariff on imports?
(D) Does higher employment raise the inflation?
The answer is: (C) Should a country lower tariff on imports?
The term “oligopoly” means
(A) monopoly
(B) few sellers
(C) socialism
(D) many sellers
The answer is: (B) few sellers