Introduction to Economics – MCQ Questions
(Most Expected MCQs for JKSSB, UPSC, SSC | Home Academy)
1. Economics as a subject deals with
A. Production of goods only
B. Consumption of goods only
C. Allocation of scarce resources to satisfy unlimited wants
D. Political administration
Answer: C. Allocation of scarce resources to satisfy unlimited wants
2. Who is known as the Father of Economics?
A. Alfred Marshall
B. John Maynard Keynes
C. Adam Smith
D. Lionel Robbins
Answer: C. Adam Smith
3. The famous book “The Wealth of Nations” was written by
A. David Ricardo
B. Karl Marx
C. Alfred Marshall
D. Adam Smith
Answer: D. Adam Smith
4. The welfare definition of economics was given by
A. Alfred Marshall
B. Lionel Robbins
C. Adam Smith
D. Karl Marx
Answer: A. Alfred Marshall
5. Scarcity definition of economics was given by
A. Adam Smith
B. Alfred Marshall
C. Lionel Robbins
D. Keynes
Answer: C. Lionel Robbins
6. Economics is a
A. Physical science
B. Social science
C. Natural science
D. Biological science
Answer: B. Social science
7. Microeconomics mainly studies
A. National income
B. Inflation
C. Individual economic units
D. Economic growth
Answer: C. Individual economic units
8. Macroeconomics deals with
A. Individual consumer
B. Single firm
C. Economy as a whole
D. Household budget
Answer: C. Economy as a whole
9. The basic problem of economics arises because
A. Wants are limited
B. Resources are unlimited
C. Resources are scarce
D. Production is high
Answer: C. Resources are scarce
10. Opportunity cost means
A. Cost paid in money
B. Cost of labour
C. Next best alternative forgone
D. Cost of production
Answer: C. Next best alternative forgone
11. Economics word is derived from
A. Latin language
B. Greek language
C. French language
D. German language
Answer: B. Greek language
12. The term “Oikos” means
A. Government
B. Market
C. Household
D. Production
Answer: C. Household
13. The term “Nomos” means
A. Management
B. Wealth
C. Consumption
D. Demand
Answer: A. Management
14. Which economist is known as Father of Modern Economics?
A. Adam Smith
B. Alfred Marshall
C. Keynes
D. Ricardo
Answer: B. Alfred Marshall
15. Who is known as the Father of Macroeconomics?
A. Adam Smith
B. Alfred Marshall
C. John Maynard Keynes
D. Lionel Robbins
Answer: C. John Maynard Keynes
16. Economics is concerned with
A. Money only
B. Wealth only
C. Human behaviour and scarce resources
D. Politics only
Answer: C. Human behaviour and scarce resources
17. Which of the following is NOT a basic economic problem?
A. What to produce
B. How to produce
C. For whom to produce
D. Where to produce
Answer: D. Where to produce
18. The study of demand and supply is part of
A. Macroeconomics
B. Microeconomics
C. Public finance
D. International trade
Answer: B. Microeconomics
19. National income is studied in
A. Microeconomics
B. Macroeconomics
C. Agricultural economics
D. Industrial economics
Answer: B. Macroeconomics
20. Utility in economics means
A. Profit
B. Satisfaction
C. Production
D. Investment
Answer: B. Satisfaction