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.

131. Which one is increasing function of price?

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Demand
Utility
Supply
Consumption
✅ The correct answer is C.
Supply is increasing function of price. The higher the price of a good, the more a firm is willing to produce and offer, hence, the supply function is upward sloping. In fact, in the perfect competition market, the supply curve is the marginal cost curve. Increasing production is only profitable if the good can be sold at a higher price.

132. In case of monopoly

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Marginal revenue curve always slopes upward
Total revenue curve always slopes upward
Marginal revenue is always equal to average revenue
Marginal revenue is always less than average revenue
✅ The correct answer is D.
In case of monopoly, Marginal revenue is always less than average revenue. A monopolist’s marginal revenue is always less than or equal to the price of the good. Marginal revenue is the amount of revenue the firm receives for each additional unit of output.

140. The situation of monopolistic competition is created by

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Small number of producers of a commodity
Lack of homogeneity of the product produced by different firms
Imperfection of the market for that product
All of the above
✅ The correct answer is D.
The situation of monopolistic competition is created by Small number of producers of a commodity, Lack of homogeneity of the product produced by different firms and Imperfection of the market for that product.