Economics MCQ Multiple Choice Questions Answers

Q: 2. Capitalism refers to:

Correct Answer is: private ownership of homes & cars

Q: 3. There are three fundamental questions every society must answer. Which of the following is one of these questions?

Correct Answer is: Who will get the goods and services that are produced?

Q: 4. In the case of agriculture:

Correct Answer is: the demand has shifted to the left less than the supply has shifted to the left

Q: 5. The agricultural price support program is an example of

Correct Answer is: equilibrium pricing

Q: 8. If there is a price ceiling, which of the following is NOT likely to occur?

Correct Answer is: gray markets

Q: 9. The goal of a pure market economy is to best meet the desires of

Correct Answer is: the government

Q: 10. Which of the following is a characteristic of pure monopoly?

Correct Answer is: perfect information

Q: 11. In pure monopoly, what is the relation between the price and the marginal revenue?

Correct Answer is: they are equal

Q: 12. In order to maximize profits, a monopoly company will produce that quantity at which the:

Correct Answer is: total revenue equals total cost

Q: 13. Compared to the case of perfect competition, a monopolist is more likely to:

Correct Answer is: make a greater amount of economic profit

Economics MCQs are essential practice tools for students and exam aspirants. These questions help reinforce key concepts and prepare you for a variety of assessments.

About Economics MCQ Questions

Economics MCQs cover a wide range of topics, including microeconomics, macroeconomics, international trade, and financial markets. These questions are designed to test your understanding of economic principles, theories, and real-world applications.

Why Practice Economics Objective Questions?

Practicing Economics MCQs offers several benefits. They help you prepare for school and college exams, competitive exams, and job interviews. Regular practice enhances your problem-solving skills, improves your recall, and boosts your confidence in handling complex economic concepts.

Who Should Use These MCQs?

Economics MCQ Questions for Practice

1. The fundamental economic problem faced by all societies is:

unemployment
poverty
inequality
scarcity

2. Capitalism refers to:

the use of markets
government ownership of capital goods
private ownership of capital goods
private ownership of homes & cars

3. There are three fundamental questions every society must answer. Which of the following is one of these questions?

What goods and services are to be produced?
How are the goods and services to be produced?
Who will get the goods and services that are produced?
All of the above

4. In the case of agriculture:

the demand has shifted to the right more than the supply has shifted to the right
the demand has shifted to the right less than the supply has shifted to the right
the demand has shifted to the left more than the supply has shifted to the left
the demand has shifted to the left less than the supply has shifted to the left

5. The agricultural price support program is an example of

a price ceiling
a price floor
equilibrium pricing

6. If there is a price floor, there will be

shortages
surpluses
equilibrium

7. If there is a price ceiling, there will be

shortages
surpluses
equilibrium

8. If there is a price ceiling, which of the following is NOT likely to occur?

rationing by first-come, first-served
black markets
gray markets
sellers providing goods for free that were formerly not free

9. The goal of a pure market economy is to best meet the desires of

consumers
companies
workers
the government

10. Which of the following is a characteristic of pure monopoly?

one seller of the product
low barriers to entry
close substitute products
perfect information

11. In pure monopoly, what is the relation between the price and the marginal revenue?

the price is greater than the marginal revenue
the price is less than the marginal revenue
there is no relation
they are equal

12. In order to maximize profits, a monopoly company will produce that quantity at which the:

marginal revenue equals average total cost
price equals marginal revenue
marginal revenue equals marginal cost
total revenue equals total cost

13. Compared to the case of perfect competition, a monopolist is more likely to:

charge a higher price
produce a lower quantity of the product
make a greater amount of economic profit
all of the above

14. Which of the following best defines price discrimination?

charging different prices on the basis of race
charging different prices for goods with different costs of production
charging different prices based on cost-of-service differences
selling a certain product of given quality and cost per unit at different prices to different buyers

15. In order to practice price discrimination, which of the following is needed?

some degree of monopoly power
an ability to separate the market
an ability to prevent reselling
all of the above

16. In price discrimination, which section of the market is charged the higher price?

the section with the richest people
the section with the oldest people
the section with the most inelastic demand
the section with the most elastic demand

17. The demand for labor is the same as the

marginal revenue product
marginal physical product
marginal cost
wage

18. The demand for labor slopes down and to the right because of

the law of demand
the iron law of wages
the law of diminishing marginal returns
economies of scale

19. The demand for labor will be more elastic if:

there are few substitutes for labor
there is a short time under consideration
labor is a large percent of the total cost of production
the demand for the product is relatively inelastic

20. Skills that can be transferred to other employers are called:

general skills
specific skills
non-pecuniary skills
all of the above

21. Which skills are most likely to be paid for by the employer?

General skills
Specific skills
Educational skills

22. If worker A earns more in wages than worker B, it could be because:

The product made by worker A sells for a higher price than that made by worker B
Worker A uses more capital per worker than worker B
Worker A has more natural ability than worker B
All of the above

23. Skills that embodied in a person are called

Human capital
Embodied skills
Physical capital
Experience skills

24. Treating an individual as typical of a group is the definition of

pure discrimination
statistical discrimination
human capital
specific skills

Economics MCQ Multiple Choice Questions Answers | Quiz for Practice

About Economics MCQ Questions

Why Practice Economics Objective Questions?

Who Should Use These MCQs?

Economics MCQ Questions for Practice

1. The fundamental economic problem faced by all societies is:

2. Capitalism refers to:

3. There are three fundamental questions every society must answer. Which of the following is one of these questions?

4. In the case of agriculture:

5. The agricultural price support program is an example of

6. If there is a price floor, there will be

7. If there is a price ceiling, there will be

8. If there is a price ceiling, which of the following is NOT likely to occur?

9. The goal of a pure market economy is to best meet the desires of

10. Which of the following is a characteristic of pure monopoly?

11. In pure monopoly, what is the relation between the price and the marginal revenue?

12. In order to maximize profits, a monopoly company will produce that quantity at which the:

13. Compared to the case of perfect competition, a monopolist is more likely to:

14. Which of the following best defines price discrimination?

15. In order to practice price discrimination, which of the following is needed?

16. In price discrimination, which section of the market is charged the higher price?

17. The demand for labor is the same as the

18. The demand for labor slopes down and to the right because of

19. The demand for labor will be more elastic if:

20. Skills that can be transferred to other employers are called:

21. Which skills are most likely to be paid for by the employer?

22. If worker A earns more in wages than worker B, it could be because:

23. Skills that embodied in a person are called

24. Treating an individual as typical of a group is the definition of

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Economics MCQ Multiple Choice Questions Answers | Quiz for Practice

About Economics MCQ Questions

Why Practice Economics Objective Questions?

Who Should Use These MCQs?

Economics MCQ Questions for Practice

1. The fundamental economic problem faced by all societies is:

2. Capitalism refers to:

3. There are three fundamental questions every society must answer. Which of the following is one of these questions?

4. In the case of agriculture:

5. The agricultural price support program is an example of

6. If there is a price floor, there will be

7. If there is a price ceiling, there will be

8. If there is a price ceiling, which of the following is NOT likely to occur?

9. The goal of a pure market economy is to best meet the desires of

10. Which of the following is a characteristic of pure monopoly?

11. In pure monopoly, what is the relation between the price and the marginal revenue?

12. In order to maximize profits, a monopoly company will produce that quantity at which the:

13. Compared to the case of perfect competition, a monopolist is more likely to:

14. Which of the following best defines price discrimination?

15. In order to practice price discrimination, which of the following is needed?

16. In price discrimination, which section of the market is charged the higher price?

17. The demand for labor is the same as the

18. The demand for labor slopes down and to the right because of

19. The demand for labor will be more elastic if:

20. Skills that can be transferred to other employers are called:

21. Which skills are most likely to be paid for by the employer?

22. If worker A earns more in wages than worker B, it could be because:

23. Skills that embodied in a person are called

24. Treating an individual as typical of a group is the definition of

Your Score

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