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. 

31. The sacrifice involved when you choose a particular course of action is called the ?

A. Alternative
B. Opportunity cost
C. Consumer cost
D. Producer cost

32. The sacrifice involved when you choose a particular course of action is called the?

A. Alternative
B. Opportunity cost
C. Consumer cost
D. Producer cost

33. Human wants are_______________?

A. Always fixed
B. Limited
C. Unlimited
D. Likely to decrease over time

34. Which of the following is not one of the basic economic s ?

A. What to produce
B. Who to produce for
C. How to produce
D. How to maximize economic growth

35. The free market involves ?

A. The free provision of products
B. The Subsidizing of products by the government
C. Market forces of supply and demand
D. All trade via barter

36. In a command (planned) economy ?

A. The price mechanism acts as an incentive
B. Resources are allocated by market forces
C. Individual firms make decisions for themselves about what to produce and how to produce it
D. The public sector is large

37. Which of the following is a normative statement in economics ?

A. More spending by the government reduces poverty
B. Higher taxes lead to less desire to work
C. The Pakistan’s economy is growing fast relative to other SAARC members
D. The government should concentrate on reducing unemployment

38. Macroeconomics deals with?

A. the behavior of the electronics industry
B. the behavior of firms
C. economics aggregates
D. the activities of individual units

39. The study of inflation is part of ?

A. descriptive economics
B. normative economics
C. macroeconomics.
D. microeconomics

40. The total demand for goods and services in an economy is known as_____________?

A. gross national product.
B. national demand.
C. economy-wide demand
D. aggregate demand

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