MCQs on Economics

MCQs on Economics – we can provide you with some multiple-choice questions on economics. Here are a few:

MCQs on Economics

1. Which of the following is an example of a positive externality?
   a) Pollution from a factory
   b) Traffic congestion
   c) Vaccination programs
   d) Increased government spending
2. The consumer price index (CPI) is used to measure:
   a) Inflation
   b) Economic growth
   c) Interest rates
   d) Stock market performance
3. Which of the following is a characteristic of a perfectly competitive market?
   a) Many buyers and many sellers
   b) Few sellers with differentiated products
   c) Barriers to entry for new firms
   d) Price-setting power for individual firms
4. The opportunity cost of a decision is:
   a) The monetary cost of the decision
   b) The time spent making the decision
   c) The value of the next best alternative
   d) The total cost of all alternatives
5. Fiscal policy refers to:
   a) Government policies that influence the overall economy
   b) Policies that regulate the financial sector
   c) Policies that control the exchange rate
   d) Policies that promote international trade
6. Which of the following is a characteristic of a recession?
   a) Falling prices and deflation
   b) Rapid economic growth and low unemployment
   c) Declining GDP and rising unemployment
   d) Increasing interest rates and inflation
7. The law of demand states that:
   a) As price increases, quantity demanded decreases
   b) As price increases, quantity demanded increases
   c) As price decreases, quantity demanded decreases
   d) Price and quantity demanded are not related
8. The term “invisible hand” is associated with the economic theory of:
   a) Supply and demand
   b) Keynesian economics
   c) Monopoly power
   d) Adam Smith’s theory of the market
9. Which of the following is an example of a regressive tax?
   a) Income tax
   b) Sales tax
   c) Property tax
   d) Corporate tax
10. The World Trade Organization (WTO) is an international organization that deals with:
    a) Monetary policy
    b) Climate change agreements
    c) International trade rules
    d) Humanitarian aid

Answers:

c) Vaccination programs
a) Inflation
a) Many buyers and many sellers
c) The value of the next best alternative
a) Government policies that influence the overall economy
c) Declining GDP and rising unemployment
a) As price increases, quantity demanded decreases
d) Adam Smith’s theory of the market
b) Sales tax
c) International trade rules