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.

33. In the case of a Giffen good, the demand curve will be

by
Horizontal
Downward to the right
Upward to the right
Vertical
✅ The correct answer is C.
In the case of a Giffen good, the demand curve will be Upward to the right. A Giffen good has an upward-sloping demand curve, which is contrary to the fundamental law of demand, which states that the quantity demanded for a product falls as the price increases, resulting in a downward slope for the demand curve.

34. Which cost increases continuously with the increase in production?

by
Avearge cost
Marginal cost
Fixed cost
Variable cost
✅ The correct answer is D.
Variable cost increases continuously with the increase in production. Variable cost varies at different level of output, this implies that when the output of a particular firm is at zero, the variable cost will be zero and when there is increase in production of output, there will also be a corresponding increase in the variable cost.

37. Agricultural goods market depicts characteristics close to

by
Perfect competition
Oligopoly
Monopoly
Monopolistic competition
✅ The correct answer is A.
Agricultural goods market depicts characteristics close to Perfect competition. A perfectly competitive market has the following characteristics: There are many buyers and sellers in the market. Each company makes a similar product. Buyers and sellers have access to perfect information about price.