Economics is a study of the usage of resources and how valuable we can make those resources under distinct captivity. It involves an intense study of the production, distribution & consumption of goods and services. Given below are important Economics MCQs with answers, that will be beneficial for competitive examinations and tests (PPSC Test, FPSC Test, SPSC Test, KPPSC Test, BPSC Test, Etea Test) as well. MCQs on Economics covers the topic like Basic Economic MCQs, Indirect Tax and Economic Welfare, Analysis of Interest Rate Changes, Carbon Trading, Changing Market Price  – and much more. Also, check Auditing MCQs with answers here. 

11. What do you mean by the supply of goods?
A.  Stock available for sale
B. Total stock in the warehouse
C. The actual production of the good
D.  Quantity of the good offered for sale at a particular price per unit of time

12. What do you mean by under conditions of perfect competition in the product market?
D.  None of the above

13. The relation that the law of demand defines is.
A. Income and price of a commodity
B. Price and quantity of a commodity
C.  Income and quantity demanded
D.  Quantity demanded and quantity supplied

14. What do you mean by a mixed economy?
A. Modern and traditional industries
B. Public and private sectors
C. Foreign and domestic investments
D. Commercial and subsistence farming

15. What do you mean by demand of a commodity?
A.  A desire for the commodity
B. Need for the commodity
C. Quantity demanded of that commodity
D. Quantity of the commodity demanded at a certain price during any particular period of time

16. Starting from the time of Independence India followed a planned economy because.
*. India followed a five-year plan and required an outlook
*. Indian constitution directive principles indicated the planned vision of India
*. The five-year plan does not indicate how much of each and every good and service is to be produced.
*. Choose the correct statements using the option below.
A. Only 2
B. 2 and 3
C. 1 and 3
D. All the above

17. What do you mean by Gross National Product?
A. The total value of goods and services produced in the country
B. The total value of all transactions in the country
C. Depreciation in the total value of goods and services produced in the country
D. The total value of goods and services produced in the country and net factor income from abroad

18. The reason for the decline in the child sex ratio in India is.
A. Low fertility rate.
B. Female foeticide
C. Incentives for boy child from government
D. None of the above

19. What things are taken into consideration while revising the poverty line periodically?
A. By conducting a survey every five years
B. National Sample Survey Organisation carry out the survey
C. Both a and b are taken into consideration
D. None of the above

20. In India, which bank has the highest share in the disbursement of credit to agriculture and allied activities?
A. Cooperative Banks
B. Regional Rural Banks
C. Commercial Banks
D. Microfinance institutions