Miscellaneous Economic MCQs

Which of the following is a characteristic of a perfectly competitive market?

A) Many sellers and differentiated products

B) Few sellers and identical products

C) One seller and unique products

D) Many sellers and similar but not identical products

The law of demand states that:

A) As price increases, quantity demanded decreases

B) As price decreases, quantity demanded increases

C) Demand is independent of price changes

D) Supply and demand are inversely related

Which of the following is an example of a positive externality?

A) Pollution from a factory

B) Education benefiting society as a whole

C) Smoking in public places

D) Private healthcare services

What does a production possibility frontier (PPF) represent?

A) Maximum output attainable with available resources

B) Minimum output necessary for economic growth

C) Production costs of different goods and services

D) Consumer preferences and utility maximization

Which of the following is NOT a factor of production?

A) Land

B) Labor

C) Money

D) Capital

Gross Domestic Product (GDP) measures:

A) Total population in a country

B) Total value of all goods and services produced in a country

C) Total government spending

D) Total exports minus imports

Inflation can be defined as:

A) Increase in the level of unemployment

B) Increase in the price level of goods and services over time

C) Decrease in the population growth rate

D) Decrease in the interest rates

Which of the following is a tool used by the Federal Reserve to control the money supply?

A) Fiscal policy

B) Exchange rate policy

C) Open market operations

D) Tariff imposition

The unemployment rate is calculated as the:

A) Number of employed individuals divided by the total labor force

B) Number of unemployed individuals divided by the total population

C) Number of unemployed individuals divided by the labor force

D) Number of employed individuals divided by the total population

Fiscal policy involves changes in:

A) Interest rates by the central bank

B) Government spending and taxation

C) Exchange rates in the foreign exchange market

D) Labor market regulations