A. What to produce
B. Who to produce for
C. How to produce
D. How to maximize economic growth
Economics Mcqs
The free market involves ?
A. The free provision of products
B. The Subsidizing of products by the government
C. Market forces of supply and demand
D. All trade via barter
In a command (planned) economy ?
A. The price mechanism acts as an incentive
B. Resources are allocated by market forces
C. Individual firms make decisions for themselves about what to produce and how to produce it
D. The public sector is large
Which of the following is a normative statement in economics ?
A. More spending by the government reduces poverty
B. Higher taxes lead to less desire to work
C. The Pakistan’s economy is growing fast relative to other SAARC members
D. The government should concentrate on reducing unemployment
Macroeconomics deals with?
A. the behavior of the electronics industry
B. the behavior of firms
C. economics aggregates
D. the activities of individual units
The study of inflation is part of ?
A. descriptive economics
B. normative economics
C. macroeconomics.
D. microeconomics
The total demand for goods and services in an economy is known as………….?
A. gross national product.
B. national demand.
C. economy-wide demand
D. aggregate demand
An increase in the wage rate ?
A. Will usually lead to more people employed
B. Will decrease total earning if the demand for labour is wage elastic
C. is illegal in a free market
D. will cause a shift in the demand for labour
A recession is ?
A. a period of declining prices.
B. a period of declining unemployment
C. a period during which aggregate output declines.
D. a period of very rapidly declining prices.
A fall in demand for labour is likely to lead to ?
A. A lower equilibrium wage and lower quantity of labour
B. A lower equilibrium wage and higher quantity of labour
C. A higher equilibrium wage and higher quantity of labour
D. A higher equilibrium wage and lower quantity of labour