Basic Concepts of Economics Questions with Solutions

This topic covers the basic ideas of economics: microeconomics and macroeconomics, demand and supply, elasticity, utility and consumption, production and costs, types of markets (perfect competition, monopoly, oligopoly and monopolistic competition), and types of economies. Questions usually test definitions and laws, such as the law of demand, the law of diminishing marginal utility, and the difference between a monopoly and an oligopoly. Be clear about cases such as Giffen goods, which break the law of demand. Adam Smith, author of 'The Wealth of Nations' (1776), is known as the father of economics. Practise the basic economic concepts questions below, written in the style of the general awareness sections of exams such as SSC, banking, railways, CUET GAT, MAH CET and CLAT. Each question comes with a detailed explanation that adds related facts, so every question helps you revise more than one point.