Economics Solved MCQS for FA BA MSc

Economics MCQs

1. In the case of agriculture,
b. the demand has shifted to the right less than the supply has shifted to the right

2. The agricultural price support program is an example of

b. a price floor

3. If there is a price floor, there will be

b. surpluses

4. If there is a price ceiling, there will be
a. shortages

5. If there is a price ceiling, which of the following is NOT likely to occur?

d. sellers providing goods for free that were formerly not free

6. The goal of a pure market economy is to best meet the desires of
a. consumers

7. In a pure market economy, which of the following is a function of the price?

I. provide information to sellers and buyers , II. provide incentives to sellers and buyers

c. both I and II

8. In a market system, sellers act in ____________ interest , but this leads to behaviors in ____________ interest.
b. self; society’s

9. The law of diminishing (marginal) returns states that as more of a variable factor is added to a certain amount of a fixed factor, beyond some point:
c. The marginal physical product falls

10. Why is the law of diminishing marginal returns true?
c. limited capital

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