Which statement about an economy’s resources is correct?
Correct answer D. They are limited at any moment in time
Topic / 67 questions
Introduction To Economics MCQs
Introduction To Economics MCQs are multiple-choice questions on the basic ideas of economics, such as scarcity, unlimited wants, resources, demand, productivity and the free market. They help students and candidates for CSS, PMS, PPSC, UGC NET and lecturer tests build a strong foundation. Every question shows its answer instantly, so you can confirm core concepts quickly.
- Miscellaneous Economics 737
- Basic of Economics 430
- Markets, Efficiency And The Public Interest 167
- Agriculture & Irrigation System of Pakistan 126
- Market 87
- Macroeconomic Issues and Analysis 75
- Money, Interest Rates And Output 73
- Introduction To Economics 70
- Population And Development 62
- Profit Maximizing Under Perfect Competition And Monopoly 56
- Income Inequality 52
- Non-Tariff Trade Barriers 48
- Aggregate Supply, Unemployment And Inflation 45
- Natural Resources and the Environment Toward Sustainable Development 44
- Costs , Supply And Perfect Competition 44
- Human Capital 42
- Labour Market 39
- Monopoly 35
- Long Term Economic Growth 30
- Inflation & Productivity 30
- Regional Trading Arrangements 29
- Characteristics and Institutions of Developing Countries 24
- Oligopoly 23
- Consumer Theory vs. Real Consumers 20
- Applied Microeconomics 20
- Alternative Theories Of The Firm 20
- Public Goods 20
- Balance of Payments, Aid and Foreign Investment 19
- Prices, Wages & Taxes 19
- Comparative GDP 19
- Budget Deficits And The Trade Balance 18
- Macroeconomic Policy Tools 18
- Asymmetric Information 17
- Application of Economics 16
- Production Factors 16
- Monopoly & Competition 15
- Capital Formation, Investment Choice, Information Technology, And Technical Progress 15
- Monetary, Fiscal And Incomes Policy, And Inflation 15
- Average And Total Cost 14
- Poverty, Malnutrition, And Income Inequality 12
- Monetary Union 10
What term describes the sacrifice made when you choose a particular course of action?
Correct answer C. Opportunity cost
How are human wants usually described in economics?
Correct answer A. Unlimited
Advertisement
Which of these is NOT one of the basic economic questions?
Correct answer A. How to maximise economic growth
What does a free market rely on?
Correct answer C. Market forces of supply and demand
Which feature is typical of a command (planned) economy?
Correct answer B. The public sector is large
Which of these is a normative economic statement?
Correct answer A. The government should concentrate on reducing unemployment
What is the focus of macroeconomics?
Correct answer C. Economic aggregates
Which branch of economics does the study of inflation belong to?
Correct answer A. Macroeconomics
Advertisement
What is the term for the total demand for goods and services in an economy?
Correct answer D. Aggregate demand
Which of the following best defines a recession?
Correct answer A. A period during which aggregate output declines
What does the concept of opportunity cost imply?
Correct answer A. A major increase in public health care spending means an expansion in other areas will be harder to achieve
What is the graph called that shows every combination of goods and services society can produce when all its resources are used efficiently?
Correct answer D. Production possibility curve
In a planned or command economy, who takes all the economic decisions?
Correct answer D. The government
Which of these activities involves a trade-off?
Correct answer D. All of these answers involve trade-offs
Advertisement
What is the effect of raising taxes and increasing welfare payments?
Correct answer B. It improves equity at the expense of efficiency
What benefit does foreign trade bring to a country?
Correct answer A. It allows a country to have a greater variety of products at a lower cost than if it tried to produce everything at home
Which activity is most likely to generate an externality?
Correct answer C. A student has a party in her room in the student hall of residence
Which of these situations shows the greatest degree of market power?
Correct answer D. Microsoft's impact on the price of desktop operating systems
What does the Phillips curve show?
Correct answer B. A decrease in inflation temporarily increases unemployment
About Introduction To Economics MCQs
This category introduces the central problem of economics: unlimited human wants facing limited resources. Questions ask about the nature of wants and resources, the basic economic problems of what, how and for whom to produce, and the difference between positive statements that can be tested and normative statements that express value judgements. Reading simple graphs, such as a positive linear relationship, is also covered.
Demand and markets form the second part. You will meet questions on substitute and complementary goods, the factors that shift a demand curve, how productivity can be raised and why workers in some regions enjoy higher living standards. Questions on the free market and the role of prices in allocating resources complete the picture. These basics support every later topic in micro and macroeconomics.
Key facts to remember
- Scarcity exists because human wants are unlimited while resources are limited.
- If a rise in the price of good A increases demand for good B, B is a substitute.
- A normative statement expresses a value judgement and cannot be tested by evidence alone.
- A change in income or tastes shifts the whole demand curve, not just the quantity demanded.
- Opportunity cost is the value of the next best alternative given up.
Exams that include Introduction To Economics MCQs
Pakistan
- CSS
- PMS
- FPSC
- PPSC
- Lecturer tests
- NTS
India
- UGC NET
- UPSC CSE
- State PSC exams
- CUET
Bangladesh
- BCS
- Bank job exams
- University admission tests (DU, RU, JU)
How to prepare for Introduction To Economics MCQs
- Practise separating positive and normative statements by checking whether the sentence contains words like 'should' or 'ought'.
- Distinguish a movement along the demand curve from a shift of the curve, since this is a frequent trap.
- Learn substitute and complement relationships with simple pairs, such as tea and coffee or cars and petrol.
- Revise the factors of production and their rewards, land with rent and labour with wages, in one quick list.
Frequently asked questions
What is the basic economic problem?
The basic economic problem is scarcity: resources are limited but human wants are unlimited. Every society must therefore decide what to produce, how to produce it and for whom to produce it. Different economic systems, such as market, command and mixed economies, answer these questions in different ways.
How many Introduction To Economics MCQs are on MCQs360?
MCQs360 has 71 Introduction To Economics MCQs, each with an instant answer. You can practise free with no sign-up, then move on to macroeconomic issues and market structures to deepen your economics knowledge. Short daily sets help a lot.
Which exams ask introductory economics MCQs?
Basic economics appears in CSS and PMS economics papers, general knowledge sections of FPSC and PPSC tests and economics lecturer tests in Pakistan. In India it appears in UGC NET, UPSC CSE, State PSC exams and CUET. In Bangladesh it features in BCS, bank job exams and university admission tests.
What is the difference between positive and normative economics?
Positive economics describes what is, using statements that can be tested with evidence, such as 'a higher price reduces quantity demanded'. Normative economics describes what ought to be, using value judgements, such as 'the government should reduce taxes'. Exams often ask you to classify a given statement.
Last reviewed October 2026