Muhammad Imdad Ullah

There are 20 MCQs in Economics and this economics quiz will help you prepare Economics MCQs for Lecturer & Subject Specialist Exams. Answer the following multiple-choice questions and press ‘Submit‘ to get your score. Online MCQs Economics for the preparation of Jobs and Economics Educational Examinations related such as Lecturer, Research Analyst, Economist, etc.

Online Multiple Choice Questions about Economics for the preparation of M.Phil., Ph.D. Admissions, and job-related examinations

1. The interest rate parity is the basis identity that relates to which of the following?

 Interest rates and exchange rates

 Exchange rates and inflation rate

 Interest rates and inflation rate

 Discount rate and inflation rate

2. Double counting in national income refers to

 Counting both as real goods and as money flow

 Counting a product more than once

 Counting both as real goods as money flow

 Counting a product at the final stage output process

3. In monopoly, which of the following is NOT true?

 The firm is a price maker

 There is one main seller

 There is freedom of entry and exit into the industry in the long run

 Products are differentiated

4. In the short run, the equilibrium price level and the equilibrium level of total output are determined by the intersection of

 The aggregate demand and the short run aggregate supply curves

 The short run aggregate supply and the long run aggregate supply curves

 The aggregate demand, the short run aggregate supply and the long run aggregate supply curves

 The aggregate demand and the long run aggregate supply curves

5. The aggregate supply curve is the relationship between

 The real domestic output purchased and the real domestic output produced

 The price level and the real domestic output produced

 The price level which producers are willing to accept and the price level purchasers are willing to pay

 The price level and the real domestic output purchased

6. For a firm buying labor competitively, the marginal input cost is equal to the

 Cost of raw materials

 Price of output

 Interest rate

 Wage

7. Which of the following economists came up with a theory regarding the tradefoff between unemployment and inflation?

 John Mrnard Keynes

 Joseph Schumpeter

 A. W. Phillips

 Milton Friedman

8. For a study of the long term growth of the economy, we use

 Real GNP

 Personal income

 Nominal GNP

 Disposable personal income

9. In monopoly, which of the following is not true?

 There is freedom of entry and exit into the industry in the long run

 Products are differentiated

 There is one main seller

 The firm is a price marker

10. Which of the following is true about the supply curve under monopoly?

 It is the result of market power and production costs

 It is same as the competitive market supply curve

 It is the portion of marginal cost curve where marginal costs exceed the minimum value of average variable costs

 None of the given option is true

11. The real exchange rate is defined as the

 Market exchange rate adjusted for prices

 Market exchange adjusted for interest rates

 Market exchange rate

 Exchange rate determined by the Government

12. Real GDP is equal to

 Nominal GDP/ Inflation

 Inflation/ Nominal GDP

 Nominal GDP + Inflation

 Nominal GDP – Inflation

13. The long-run aggregate supply curve will shift to the right if

 Factors of production (such as labor and capital) increase

 Expenditures (such as consumption and net exports increase

 The prices of inputs used to produce goods and services (such as wages and the price of oil) decrease

 The price level increases

14. If we compare Gross Domestic Product (GDP) with Gross National
(1) Product (GNP) then

 GNP = NNP + Net Income from abroad

 GNP = GDP + Net Income from abroad

 GNP – Net Income from abroad

 GNP = GDP – Net income from abroad

15. A nation’s balance of payments can be affected by changes in

 Foreign income

 The differential between domestic and foreign interest rates

 The real exchange rate

 All of the given options

16. The price elasticity of demand for any goods must be less than or equal to zero unless

 The goods is a luxury

 The goods is necessity

 The goods is a Giffen good

 None of the given options

17. Under the kinked demand curve model, an increase in marginal cost will lead to

 Neither a change in output level nor a change in price

 An increase in output level and a decrease in price

 A decrease in output level and an increase in price

 A decrease in output level and no change in price

18. What is the interest rate effect that explains why the aggregate demand curve slopes downward?

 It refers to the effect of changes in the price level on interest rates which in turn affects the quantity of investment demanded

 It refers to the shifts in aggregate demand when interest rates change

 It refers to the effect of changes in the price level on quantity of investment demanded which in turn affects interest rates

 It refers to the effect to interest rates on borrowing which in turn affects consumption spending

19. Which of the following events will lead toward cost-push inflation and therefore stagnation?

 An increase in taxes on individuals

 A decrease in real interest rates

 A union settlement that increase wage levels

 An increase in government purchases

20. To know the spending capacity of the household sector, we have to use the concept of

 National income

 Personal income

 Personal disposable income

 Private income

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Online MCQs Economics

• The price elasticity of demand for any goods must be less than or equal to zero unless
• In monopoly, which of the following is NOT true?
• Under the kinked demand curve model, an increase in marginal cost will lead to
• For a firm buying labor competitively, the marginal input cost is equal to the
• The aggregate supply curve is the relationship between
• The long-run aggregate supply curve will shift to the right if
• A nation’s balance of payments can be affected by changes in
• Real GDP is equal to
• If we compare Gross Domestic Product (GDP) with Gross National (1) Product (GNP) then
• In monopoly, which of the following is not true?
• Which of the following is true about the supply curve under monopoly?
• Which of the following events will lead toward cost-push inflation and therefore stagnation?
• Double counting in national income refers to
• To know the spending capacity of the household sector, we have to use the concept of
• For a study of the long-term growth of the economy, we use
• In the short run, the equilibrium price level and the equilibrium level of total output are determined by the intersection of
• What is the interest rate effect that explains why the aggregate demand curve slopes downward?
• Which of the following economists came up with a theory regarding the tradeoff between unemployment and inflation?
• The real exchange rate is defined as the
• The interest rate parity is the basis identity that relates to which of the following?

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Online MCQs about the subject of Economics. There are 20 MCQs in each quiz. These quizzes will help you prepare Economics MCQs for Lecturer & Subject Specialist Exams. Answer the following multiple-choice questions and press ‘Submit‘ to get your score. Click the link below to start with the Economics Quiz.

MCQs Economics Questions and Quizzes

Microeconomics Quizzes

The above all are online Multiple Choice Questions about Economics for the preparation of Jobs and Economics Educational Examinations such as Lecturer, Research Analyst, Economist, etc. The gmstat.com website is about online test preparation. It discusses economics, math, computer science, and other subjects. The economics section has plenty of multiple-choice questions. The quizzes cover topics related to microeconomics, inflation, marginal benefits, circular flow of goods, planned economy, demand and supply, and other economic concepts. These quizzes will help you to prepare for PPSC, FPSC, NAT, GAT, and many other testing services. it will also help in preparing for college and university admissions and degree examinations.

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