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
61. The retail price index is used to__________________?
A. construct price lists
B. compare shop prices
C. measure changes in the cost of living
D. None of the above
62. If you income during one year is Rs10,000 and the following year it is Rs12,000 then it has grown by ________________?
63. On a graph, a positive linear relationship___________________?
A. moves down to the right
B. moves up to the left
C. moves up to the right
D. moves down to the left
64. When we know the quantity of a product that buyers wish to purchase at each possible price we know_____________?
C. Excess demand
D. Excess supply
65. The equilibrium price clears the market it is the price at which _________________?
A. Everything is sold
B. Buyers spend all their money
C. Quantity demanded equal quality supplied
D. Excess demanded equals quantity
E. C and D
66. ________ and ___________ do not directly affect the demand curve ?
A. the price of related goods consumer income
B. consumer incomes, tastes
C. the costs of production bank opening hours
D. the price of related goods preferences
67. A demand curve can shift because changing ?
B. prices of related goods
D. all of the above
68. If a price increase of good A increases the quantity demanded of good B, then good B is a________________?
A. substitute good
B. complementary good
D. inferior good
69. An increase in consumer income will increase demand for a _________ but decrease demand for a?
A. substitute good, inferior good
B. normal good inferior good
C. inferior good normal good
D. normal good, complementary good
70. The basic economic problems will not be solved by ?
A. Market forces
B. Government intervention
C. A mixture of government intervention and the free market
D. The creation of unlimited resources