MCQs on Economics and Related Concepts

Economics is the study of how people utilize:

• Unlimited resources

• Limited resources

• Only money

• Only natural resources

The term "land" in economics refers to:

• Only farms

• Natural resources like land, water, and minerals

• Government buildings

• Houses and apartments

The basic economic problem of scarcity arises because:

• People have limited wants

• Resources are unlimited

• Resources are limited and wants are unlimited

• Governments control all production

Macroeconomics focuses on:

• Individual businesses

• Small-scale industries

• The economy as a whole

• Family budgeting

What is opportunity cost?

• The total cost of all available alternatives

• The value of the next best alternative forgone when a choice is made

• The amount of money spent on a chosen option

• The difference between total revenue and total cost

What is unemployment?

• A situation where everyone has a job

• A situation where people who want to work can't find jobs

• An increase in spending by consumers

• The total number of people in a country

How do private sector businesses get money?

• Through government tax revenues

• Through private investments and bank loans

• Through public donations

• Through government subsidies

What does a free market mean?

• The government sets prices

• The government controls businesses

• Prices are set by supply and demand, with no government control

• A central authority decides how resources are used

Who is known as the “Father of Economics”?

• John Keynes

• Milton Friedman

• Karl Marx

• Adam Smith

A tractor used by a farmer is an example of:

• Land

• Labour

• Capital

• Entrepreneurship