Economics MCQs

Prepare for your exams and job tests with our comprehensive collection of Economics MCQs with answers and explanations. These questions cover key topics such as microeconomics, macroeconomics, demand and supply, monetary policy, international trade, and economic growth. Designed for students, competitive exam aspirants, and professionals, our Economics MCQs help you strengthen concepts and improve problem-solving skills. Practice online for NTS, PPSC, FPSC, CSS, PMS, university entry tests, and other competitive exams with the latest and updated Economics multiple-choice questions

123. What is referred by the Working capital?

A. Assets of business that can be applied to its operation
B. Amount of current assets that exceeds current liabilities
C. Both of them
D. None of them
✅ The correct answer is option C.

126. What is a trade name?

A. Used to identify a commercial product or service
B. By which commodity service or process is known to trade
C. Under which a business firm operates
D. All of them
✅ The correct answer is option D.

127. Which of the following statements is False?

A. participants in a contestable market are continuously faced with a competition or the threat of competition because entry is cheap
B. In a contestable market, economic profits cannot persist in the long run.
C. In a contestable market, forces will guarantee that the firms produce efficiently or be driven out of business
D. For a market to be contestable, the product must be produced with a labor-intensive technology
✅ The correct answer is option D.

129. The Vicious circle theory states that?

A. Growing government assistance creates an addiction to welfare programs
B. Low-income levels create pressure for money creation
C. Low income levels create pressure for cheap imports
D. Low per capita incomes creates low savings that keep incomes low
✅ The correct answer is option D.