Economics MCQs

1) When aggregate supply exceeds aggregate demand:
(A) Business inventory accumulates
(B) Unemployment exists
(C) Price of consumer goods rise
(D) People save more than they intended to save

2) 'Coal' is considered as a:
(A) Consumer good
(B) Consumer durable
(C) Social good
(D) Capital single use good

3) A monopolist maximizes his profit when:
(A) Price = average cost
(B) Marginal cost = marginal revenue
(C) Average cost = marginal cost
(D) Marginal revenue = average cost

4) According to Lord Keynes, interest rate is determined by the supply and demand for:
(A) Savings
(B) Loanable funds
(C) Money
(D) Capital goods

5) If tea and coffee are substitutes, a reduction in the price of coffee will:
(A) Increase the sale of tea
(B) Decrease the sale of coffee
(C) Increase the sale of coffee
(D) Decrease the price of tea

6) A 'hard currency' is the one:
(A) Whose external value is increasing
(B) Which can be acquired only with official permission
(C) Which can be obtained only against sale of gold
(D) Which is really accepted in international transactions

7) Real wages include:
(A) All the services and goods
(B) Wages in terms of money
(C) Bonus
(D) Accident compensation

8) Which of the following is correct?
(A) Consumption is a function of income
(B) Consumption is a function of saving
(C) Income is a function of consumption
(D) Income is a function of saving

9) Perfect market means there are:
(A) Many sellers and many buyers
(B) A few sellers and a few buyers
(C) A few sellers and a many buyers
(D) A few buyers and a many buyers

10) The group of people who benefit from inflation is:
(A) Creditor
(B) Debtors
(C) Salaried class
(D) Wage earners


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