Download Economics Practice Combo (MCQs PDF + Live Test)
1. Economics is primarily the study of:
a. Wealth only
b. Human behavior regarding scarce resources
c. Government policies only
d. International relations
2. Who is known as the “Father of Economics”?
a. Karl Marx
b. John Maynard Keynes
c. Adam Smith
d. David Ricardo
3. The book “Wealth of Nations” was written by:
a. Keynes
b. Adam Smith
c. Marx
d. Malthus
4. GDP stands for:
a. Gross Domestic Product
b. General Domestic Price
c. Gross Development Plan
d. Global Domestic Product
5. Inflation refers to:
a. Fall in price level
b. Rise in general price level
c. Rise in exports
d. Rise in imports
6. Deflation means:
a. Increase in employment
b. Decrease in general price level
c. Increase in demand
d. Rise in wages
7. Which institution issues Special Drawing Rights (SDRs)?
a. World Bank
b. IMF
c. WTO
d. ADB
8. The headquarters of IMF is located in:
a. Geneva
b. Paris
c. Washington D.C.
d. New York
9. WTO was established in:
a. 1945
b. 1985
c. 1995
d. 2005
10. The headquarters of WTO is in:
a. Geneva
b. Vienna
c. Brussels
d. London
11. Demand and supply theory is mainly associated with:
a. Microeconomics
b. Macroeconomics
c. Public Finance
d. International Trade
12. National income is measured over:
a. One week
b. One month
c. One year
d. Five years
13. Per capita income is:
a. Total imports ÷ exports
b. National income ÷ population
c. GDP ÷ inflation
d. Tax ÷ GDP
14. Which economist propounded the theory of comparative advantage?
a. Adam Smith
b. Keynes
c. Ricardo
d. Marx
15. Monopoly means:
a. One buyer
b. Many buyers
c. One seller
d. Many sellers
16. Oligopoly means:
a. One seller
b. Few sellers
c. Many sellers
d. One buyer
17. Fiscal policy is related to:
a. Government taxation and expenditure
b. Foreign policy
c. Banking operations only
d. Agriculture
18. Monetary policy is generally controlled by:
a. Parliament
b. Judiciary
c. Central Bank
d. WTO
19. The central bank of USA is:
a. Bank of America
b. Federal Reserve
c. IMF
d. World Bank
20. The World Bank was established in:
a. 1944
b. 1995
c. 1971
d. 1930
21. Bretton Woods Conference was held in:
a. 1919
b. 1944
c. 1955
d. 1991
22. Recession is characterized by:
a. Rising GDP
b. Decline in economic activity
c. Hyperinflation
d. Currency appreciation
23. Hyperinflation means:
a. Mild inflation
b. Very high inflation
c. Deflation
d. Stable prices
24. Stagflation means:
a. Inflation with unemployment
b. Growth with inflation
c. Growth without inflation
d. Deflation with growth
25. Which organization regulates global trade?
a. IMF
b. WTO
c. OPEC
d. OECD
26. OPEC deals mainly with:
a. Agriculture
b. Petroleum
c. Tourism
d. Banking
27. The headquarters of OPEC is in:
a. Vienna
b. Geneva
c. Washington
d. Paris
28. Capitalism emphasizes:
a. State ownership
b. Private ownership
c. Collective farming
d. Central planning
29. Socialism emphasizes:
a. Private control only
b. Public ownership
c. No government role
d. Barter system
30. GDP includes:
a. Illegal transactions
b. Final goods and services
c. Intermediate goods only
d. Gifts only
31. Which tax is imposed directly on income?
a. GST
b. Customs Duty
c. Income Tax
d. Excise Duty
32. Customs Duty is levied on:
a. Salaries
b. Imports and exports
c. Land
d. Property
33. Foreign Direct Investment (FDI) means:
a. Domestic investment
b. Direct investment in another country
c. Tax payment abroad
d. Import duty
34. Balance of Trade refers to:
a. Imports + taxes
b. Exports – Imports
c. GDP – GNP
d. Inflation – Deflation
35. Which economist is associated with Keynesian economics?
a. Ricardo
b. Keynes
c. Marx
d. Friedman
36. Keynesian economics supports:
a. No government intervention
b. Government intervention
c. Barter trade
d. Gold standard only
37. Opportunity cost means:
a. Accounting cost
b. Cost of next best alternative foregone
c. Fixed cost
d. Tax cost
38. Marginal utility refers to:
a. Total satisfaction
b. Additional satisfaction from extra unit
c. Tax benefit
d. Average income
39. Law of demand states:
a. Price ↑ Demand ↑
b. Price ↑ Demand ↓
c. Price ↓ Demand ↓
d. Income ↓ Demand ↑
40. GNP includes:
a. Domestic income only
b. Domestic + Net factor income from abroad
c. Imports only
d. Exports only
41. Which country uses Euro currency?
a. UK
b. Germany
c. Japan
d. China
42. Yen is the currency of:
a. China
b. Japan
c. Korea
d. Thailand
43. Yuan is the currency of:
a. Japan
b. China
c. Russia
d. Vietnam
44. Eurozone refers to:
a. Asian countries
b. Countries using Euro
c. Oil-producing countries
d. NATO countries
45. Which institution provides long-term development loans?
a. IMF
b. WTO
c. World Bank
d. OPEC
46. Which economist developed the population theory?
a. Malthus
b. Ricardo
c. Marx
d. Keynes
47. Public debt means:
a. Household debt
b. Government borrowing
c. Corporate profit
d. Bank deposits
48. Tariff is a tax on:
a. Income
b. Wealth
c. International trade goods
d. Agriculture
49. Free trade means:
a. No international trade
b. Trade without barriers
c. Trade by government only
d. Tax-free salaries
50. Exchange rate means:
a. Interest rate
b. Value of one currency in terms of another
c. Tax rate
d. Wage rate
51. Which economist is known as the “Father of Modern Macroeconomics”?
a. Adam Smith
b. Keynes
c. Ricardo
d. Friedman
52. Microeconomics deals with:
a. Economy as a whole
b. Individual units of economy
c. Global trade only
d. Public finance only
53. Macroeconomics studies:
a. Individual consumer behavior
b. National economy as a whole
c. Single firm output
d. Personal budgeting
54. The law of diminishing marginal utility was developed by:
a. Alfred Marshall
b. Adam Smith
c. Karl Marx
d. Keynes
55. Perfect competition is characterized by:
a. One seller
b. Few sellers
c. Many buyers and sellers
d. One buyer
56. Monopsony means:
a. One seller
b. One buyer
c. Few buyers
d. Many sellers
57. Consumer surplus concept is associated with:
a. Marshall
b. Marx
c. Ricardo
d. Keynes
58. Which economist gave the theory of absolute advantage?
a. Ricardo
b. Keynes
c. Adam Smith
d. Friedman
59. Inflation caused by excess demand is called:
a. Cost-push inflation
b. Demand-pull inflation
c. Deflation
d. Disinflation
60. Inflation due to rising production costs is:
a. Demand-pull inflation
b. Hyperinflation
c. Cost-push inflation
d. Deflation
61. CPI stands for:
a. Consumer Price Index
b. Current Price Indicator
c. Consumer Product Indicator
d. Capital Price Index
62. GDP at market price includes:
a. Subsidies only
b. Taxes only
c. Indirect taxes and excludes subsidies
d. Exports only
63. The invisible hand theory is associated with:
a. Marx
b. Keynes
c. Adam Smith
d. Ricardo
64. Fiscal deficit occurs when:
a. Revenue > Expenditure
b. Expenditure > Revenue
c. Imports > Exports
d. Inflation falls
65. Repo rate is the rate at which:
a. Banks lend to customers
b. Central bank lends to commercial banks
c. Government borrows from IMF
d. IMF lends to countries
66. Reverse repo rate is:
a. Rate at which banks borrow from central bank
b. Rate at which central bank borrows from banks
c. Import duty rate
d. Inflation rate
67. Liquidity means:
a. Profitability
b. Ease of converting asset into cash
c. Tax payment
d. Trade deficit
68. Which organization publishes World Economic Outlook?
a. WTO
b. IMF
c. OPEC
d. OECD
69. A progressive tax means:
a. Same tax for all
b. Higher income, higher tax rate
c. Lower income, higher tax
d. No tax
70. Regressive tax means:
a. Burden falls more on lower income groups
b. Higher income, higher burden
c. No burden
d. Only indirect tax
71. VAT stands for:
a. Value Added Tax
b. Variable Added Tax
c. Verified Annual Tax
d. Value Adjustment Tariff
72. Which institution settles trade disputes globally?
a. IMF
b. WTO
c. World Bank
d. OPEC
73. The Human Development Index (HDI) is published by:
a. IMF
b. World Bank
c. UNDP
d. WTO
74. HDI measures:
a. Military power
b. Human development indicators
c. Oil production
d. Inflation
75. Which economist is associated with monetarism?
a. Friedman
b. Keynes
c. Ricardo
d. Marx
76. Milton Friedman emphasized:
a. Fiscal policy
b. Money supply
c. Barter system
d. Mercantilism
77. Devaluation means:
a. Increase in currency value
b. Official reduction in currency value
c. Rise in GDP
d. Increase in tax rate
78. Appreciation of currency means:
a. Currency loses value
b. Currency gains value
c. Inflation rises
d. Imports fall automatically
79. Depreciation of currency generally makes exports:
a. Costlier
b. Cheaper
c. Illegal
d. Unchanged always
80. Which body provides loans to poor countries?
a. IMF
b. IDA
c. OPEC
d. NATO
81. IDA is part of:
a. WTO
b. World Bank Group
c. IMF
d. OECD
82. IMF mainly provides:
a. Long-term development loans
b. Short-term balance of payments support
c. Military assistance
d. Trade licenses
83. Which organization promotes petroleum exporters’ interests?
a. WTO
b. IMF
c. OPEC
d. APEC
84. A trade surplus occurs when:
a. Imports exceed exports
b. Exports exceed imports
c. Inflation exceeds GDP
d. Taxes exceed spending
85. A trade deficit occurs when:
a. Exports exceed imports
b. Imports exceed exports
c. GDP exceeds GNP
d. Inflation falls
86. Which economic system combines private and public ownership?
a. Capitalism
b. Socialism
c. Mixed Economy
d. Feudalism
87. Scarcity in economics means:
a. Unlimited resources
b. Limited resources relative to wants
c. No production
d. No taxation
88. Which market structure has product differentiation?
a. Perfect Competition
b. Monopoly
c. Monopolistic Competition
d. Monopsony
89. The Phillips Curve shows relation between:
a. Inflation and unemployment
b. GDP and exports
c. Imports and taxation
d. Savings and debt
90. Which country hosts the headquarters of OECD?
a. UK
b. France
c. USA
d. Germany
91. OECD headquarters is located in:
a. Paris
b. Geneva
c. Vienna
d. Brussels
92. The G7 is a group of:
a. Developing countries
b. Major advanced economies
c. Oil exporters
d. Asian countries
93. BRICS includes:
a. Brazil, Russia, India, China, South Africa
b. Brazil, Russia, Iran, China, Spain
c. Belgium, Russia, India, Canada, Sweden
d. Brazil, Romania, Italy, China, Sudan
94. Which country is NOT a member of BRICS?
a. India
b. China
c. Germany
d. Brazil
95. WTO replaced:
a. IMF
b. World Bank
c. GATT
d. OPEC
96. GATT stands for:
a. General Agreement on Tariffs and Trade
b. Global Agreement on Trade Taxes
c. General Association of Trade Treaties
d. Global Authority for Tariffs and Trade
97. The headquarters of World Bank is in:
a. Geneva
b. Washington D.C.
c. Paris
d. London
98. Which country has the largest GDP (nominal) in the world?
a. China
b. USA
c. Japan
d. Germany
99. Purchasing Power Parity (PPP) compares:
a. Military budgets
b. Currency purchasing power
c. Export taxes
d. Gold reserves
100. A budget surplus occurs when:
a. Expenditure exceeds revenue
b. Revenue exceeds expenditure
c. Imports exceed exports
d. Inflation rises
101. Which economist wrote "Capital"?
a. Adam Smith
b. Karl Marx
c. Keynes
d. Ricardo
102. Mercantilism emphasized:
a. Free trade
b. Export surplus
c. State socialism
d. Barter system
103. The law of supply states:
a. Price ↑, Supply ↓
b. Price ↑, Supply ↑
c. Price ↓, Supply ↑
d. Demand ↑, Supply ↓
104. Elastic demand means:
a. Demand unchanged with price change
b. Demand highly responsive to price change
c. Supply exceeds demand
d. No market demand
105. Inelastic demand means:
a. Demand highly responsive
b. Demand not very responsive to price changes
c. Zero demand
d. Unlimited demand
106. Which is NOT a factor of production?
a. Land
b. Labour
c. Capital
d. Inflation
107. Rent is the reward for:
a. Labour
b. Land
c. Capital
d. Entrepreneurship
108. Interest is the reward for:
a. Labour
b. Land
c. Capital
d. Government
109. Profit is the reward for:
a. Entrepreneur
b. Labour
c. Land
d. State
110. Labour is rewarded by:
a. Rent
b. Interest
c. Wage
d. Profit
111. Which organization publishes World Development Report?
a. IMF
b. WTO
c. World Bank
d. OECD
112. The Asian Development Bank headquarters is in:
a. Tokyo
b. Manila
c. Singapore
d. Bangkok
113. ADB was established in:
a. 1966
b. 1944
c. 1995
d. 1985
114. The European Central Bank is headquartered in:
a. Paris
b. Frankfurt
c. London
d. Brussels
115. Which currency is used by the Eurozone?
a. Pound
b. Dollar
c. Euro
d. Franc
116. The Bank of England is the central bank of:
a. UK
b. France
c. Germany
d. Canada
117. Which country uses Dollar as currency?
a. Japan
b. USA
c. Germany
d. Russia
118. Poverty line refers to:
a. Line separating rich and poor
b. Minimum income level for basic needs
c. Export target
d. Tax slab
119. Unemployment means:
a. Working part-time
b. Willing but unable to find work
c. High inflation
d. Trade deficit
120. Structural unemployment occurs due to:
a. Seasonal changes
b. Skill mismatch and economic changes
c. Temporary holidays
d. Price rise
121. Cyclical unemployment is linked with:
a. Business cycle fluctuations
b. Agriculture
c. Weather changes
d. Festivals
122. Frictional unemployment occurs due to:
a. Job transitions
b. Drought
c. Inflation
d. Currency crisis
123. A recession lasting long is called:
a. Boom
b. Expansion
c. Depression
d. Recovery
124. Which institution is known as lender of last resort?
a. WTO
b. Commercial Bank
c. Central Bank
d. OPEC
125. Open Market Operations are used in:
a. Fiscal Policy
b. Monetary Policy
c. Trade Policy
d. Industrial Policy
126. CRR stands for:
a. Cash Reserve Ratio
b. Capital Revenue Rate
c. Current Repo Ratio
d. Credit Reserve Return
127. SLR stands for:
a. Statutory Liquidity Ratio
b. Standard Loan Rate
c. Supply Lending Ratio
d. State Liquidity Reserve
128. Which tax is generally considered indirect?
a. Income Tax
b. Corporate Tax
c. GST
d. Wealth Tax
129. GST stands for:
a. Goods and Services Tax
b. General Sales Tariff
c. Global Service Tax
d. Goods Supply Tariff
130. Subsidy means:
a. Government financial support
b. International tariff
c. Import quota
d. Export ban
131. Dumping in trade means:
a. Exporting at very low prices
b. High taxation
c. Banning imports
d. Currency appreciation
132. Quota in international trade means:
a. Tax on exports
b. Limit on quantity traded
c. Currency exchange rule
d. Banking rule
133. Foreign exchange reserves are held by:
a. Courts
b. Central Bank
c. WTO
d. Parliament
134. Gold standard means:
a. Currency backed by gold
b. Gold imports banned
c. Tax on gold
d. Gold-only trade
135. Liberalization means:
a. Increased government controls
b. Reduced restrictions on economy
c. Barter trade
d. Nationalization
136. Privatization refers to:
a. Government ownership increase
b. Transfer to private ownership
c. International trade ban
d. Public borrowing
137. Globalization refers to:
a. Isolation of economies
b. Increasing global integration
c. End of trade
d. State monopoly
138. Which country hosts IMF headquarters?
a. USA
b. France
c. UK
d. Switzerland
139. Nominal GDP is measured at:
a. Constant prices
b. Current market prices
c. International prices
d. Gold prices
140. Real GDP is measured at:
a. Current prices
b. Constant prices
c. Import prices
d. Export prices
141. Consumer Price Index measures:
a. Wholesale prices
b. Consumer-level price changes
c. Export prices
d. Tax burden
142. WPI stands for:
a. World Price Index
b. Wholesale Price Index
c. Weighted Production Index
d. Wealth Price Indicator
143. Which organization monitors oil market trends globally?
a. WTO
b. IMF
c. OPEC
d. NATO
144. Economic growth generally means:
a. Rise in national output
b. Fall in GDP
c. Rise in unemployment
d. End of trade
145. Economic development includes:
a. Growth only
b. Growth with welfare improvements
c. Inflation only
d. Tax reduction only
146. Sustainable development emphasizes:
a. Unlimited resource use
b. Present needs without harming future generations
c. Industrialization only
d. Export surplus only
147. Which institution gives sovereign credit ratings?
a. WTO
b. IMF
c. Moody’s
d. OPEC
148. Venture capital finances:
a. Established monopolies
b. High-risk startups
c. Government salaries
d. Imports only
149. Blue economy is related to:
a. Mining
b. Ocean-based economic activities
c. Agriculture
d. Space economy
150. Circular economy emphasizes:
a. Wasteful production
b. Reuse, recycling and sustainability
c. Import restrictions
d. Central planning only