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.

147. In the short run if a perfectly competitive firm finds itself operating at a loss, it will

by
Reduce the size of its plant to lower fixed costs
Raise the price of its product
Shut down
Continue to operate as long as it covers its variable cost
✅ The correct answer is D.
In the short run if a perfectly competitive firm finds itself operating at a loss, it will continue to operate as long as it covers its variable cost.

148. The slope of indifference curve indicates

by
Price ratio between two commodities
Marginal rate of substitution
Factor substitution
Level of indifference
✅ The correct answer is B.
The slope of indifference curve indicates Marginal rate of substitution. The marginal rate of substitution (MRS) is the amount of a good that a consumer is willing to give up for another good, as long as the new good is equally satisfying.

150. Profit is maximum when

by
Slope of MC and Mr is the same
Slope of TC and TR is the same
Slope of AC and AR is the same
None of the above
✅ The correct answer is B.
Profit is maximum when Slope of TC and TR is the same. To obtain the profit maximizing output quantity, we start by recognizing that profit is equal to total revenue (TR) minus total cost (TC).