Economics

Economics MCQs with Answers and Explanations | Microeconomics & Macroeconomics Objective Questions.

Strengthen your knowledge of Economics with a rich collection of MCQs with answers and detailed explanations. Topics include microeconomics, macroeconomics, demand and supply, national income, inflation, monetary policy, fiscal policy, international trade, economic growth, and development economics. These multiple-choice questions are designed for students, teachers, and candidates preparing for competitive exams (CSS, PMS, NTS, FPSC, PPSC, UPSC, MBA, BBA, etc.). Each MCQ is supported by a clear solution and explanation to improve conceptual clarity, analytical ability, and exam performance. Perfect for self-assessment, practice, and revision in the field of Economics.

92. The second glass of lemonade gives lesser satisfaction to a thirsty biy, this is a clear case of

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Law of demand
Law of diminishing returns
Law of diminishing marginal utility
Law of supply
✅ The correct answer is C.
The second glass of lemonade gives lesser satisfaction to a thirsty boy, this is a clear case of Law of diminishing marginal utility. The law of diminishing marginal utility describes a familiar and fundamental tendency of human behavior.

94. Which of the following is CORRECT with respect to resources?

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Money is a capital good
Human skills are a labour input
Entrepreneur is part of the labour input
Natural resources include human input
✅ The correct answer is B.
Human skills are a labour input is correct with respect to resources. The human or the interpersonal skills are the skills that present the managers’ ability to interact, work or relate effectively with people. These skills enable the managers to make use of human potential in the company and motivate the employees for better results.

99. Lesser production of ____ would lead to lesser production in future.

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Public goods
Consumer goods
Capital goods
Agricultural goods
✅ The correct answer is C.
Lesser production of Capital goods would lead to lesser production in future. Production of both capital and consumer goods is essential for the economy. Capital goods (like plant and machinery) are needed for further production and future growth. Consumer goods are needed for present consumption.