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
51. Which of the following situations describes the greatest market power ?
A. Subaru’s impact on the price f cars
B. a farmer’s impact on the price of corn
C. Microsoft’s impact on the price of desktop operating systems
D. a student’s impact on college tuition
52. Workers in Western Europe enjoy a high standard of living because ?
A. the countries of Western Europe have set high minimum wage rates.
B. Unions in Western Europe keep the wage high
C. none of these answers.
D. The countries of Western Europe have protected their industries from foreign corporation
E. Workers in the united states are highly productive
53. The Phillips curve shows that ?
A. the business cycle has been eliminated
B. an increase in inflation temporarily increases unemployment.
C. inflation and unemployment are unrelated in the short run.
D. a decrease in inflation temporarily increases unemployment.
E. none of these
54. You are planning to run a hot dog stand during a forthcoming fair. You originally estimated that you will generated sales revenue of Rs 2000 and you have already spent Rs 1000 building the hot dog stand. The hot dog stand is nearly completed but now you estimate total sales to be only Rs 800 because the fair clashes with a major music festival in a nearby location. You can complete the hot dog stand for another Rs 300 Your decision rule should be to complete the hot dog stand as long as the cost to complete the stand is less than ?
A. Rs 300
B. Rs 1000
C. Rs 500
D. Rs 800
55. Productivity can be increased by ?
A. improving the education of workers
B. raising union wages.
C. raising minimum wages.
D. restricting trade with foreign countries.
56. The opportunity cost of a good is______________?
A. the time lost in finding it
B. the quantity of other goods sacrificed to get another unit of that good
C. the expenditure on the good
D. the loss of interest in using savings
57. In a free market?
A. government intervenes
B. government plan production
C. government interferes
D. Prices adjust to reconcile scarcity and desires
58. Normative economics Forms ________ based on ________?
A. positive statements, facts
B. opinions personal facts
C. positive statements values
D. opinions facts
59. If the marginal benefit is greater than marginal cost, a rational choice involves?
A. no more of the activity.
B. less of the activity
C. more of the activity
D. more or less, depending on the benefits of other activities
60. Data are important in economics because _________ and ____________?
A. they suggest relationships for an explanation, allow testing of hypotheses
B. they can be used for tables, they can be graphed
C. they can be used in computers governments use them
D. they provide interesting information can be summarized