MCQ Collection
Economics MCQs
Practice Economics questions with answers and explanations.
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Correct Answer: B. higher price and higher quantity
Explanation:
Higher demand shifts the curve right, raising both price and quantity in the short run.
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Correct Answer: B. the next best alternative foregone
Explanation:
Opportunity cost is the value of the next best alternative you give up.
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Correct Answer: B. a rise in general price levels
Explanation:
Inflation means general prices rise over time.
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Correct Answer: A. fiscal policy
Explanation:
Government spending is part of fiscal policy.
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Correct Answer: B. Hammer used in a factory
Explanation:
A capital good is used to produce other goods.
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Correct Answer: A. perfect competition
Explanation:
Many buyers and sellers is a feature of perfect competition.
