Economics MCQs MCQs - General Knowledge Practice | PakExamPoint

Practise Economics MCQs MCQs in General Knowledge. Attempt multiple-choice questions, check answers and revise related subtopics.

Economics MCQs MCQs and revision practice

Study Economics MCQs through multiple-choice questions in General Knowledge. This subtopic contains 276 practice questions. Read the wording carefully, compare the options and attempt an answer before checking the solution in learning mode.

Use these Economics MCQs MCQs to identify the facts, rules or methods you need to revise. Where an explanation is available, work through it and write down why your chosen option was correct or incorrect. Revisit difficult questions after reviewing your notes, then use exam mode for timed practice.

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Economics MCQs: questions and answer review

Try each question before opening its answer. Record the concept behind each mistake and revisit it during your next practice session.

1. A petty worker usually works in?

Check answer and explanation

Answer: Small shop

Explanation A petty worker is a person doing small-scale or minor work. Such workers are commonly found in small shops or stalls.

2. People from rural areas are mainly engaged in _____?

دیہی علاقوں کے لوگ زیادہ تر کس قسم کی پیداوار میں مصروف ہوتے ہیں؟

Check answer and explanation

Answer: Primary production

Explanation Primary production includes extracting and producing natural resources, like crops, livestock, and minerals . Rural populations rely heavily on agriculture and related activities Additional information : Examples of primary production: wheat farming, fruit orchards, fishing, cattle rearing . These activities support urban industries by providing raw materials. Last verified on 20-01-2026

3. Suppose the marginal product of labour equals 1/L. If the firm can sell its output for $10 per unit, and the wage is $1 per unit, how many units of labour will the firm hire?

Check answer and explanation

Answer: 10

Explanation Firm hires until: Price × MP of labor = Wage 10 × (1/L) = 1 10/L = 1 L = 10 So the firm will hire 10 units of labour. Last verified on 22-04-2026

4. To use national economy and national resources in a better way is called _____?

قومی معیشت اور قومی وسائل کو بہتر طریقے سے استعمال کرنا _____ کہلاتا ہے؟

Check answer and explanation

Answer: Economic Planning

Explanation Economic planning refers to the process of allocating resources and making decisions to achieve economic goals and objectives. It involves setting priorities, allocating resources , and coordinating efforts to achieve efficient use of resources and promote economic growth and development.

5. In a perfectly competitive resource market the Marginal Revenue Product Curve is?

مکمل مسابقتی ریسورس مارکیٹ میں معمولی آمدنی پروڈکٹ وکر کیسا ہوتا ہے؟

Check answer and explanation

Answer: Downward sloping

Explanation In a perfectly competitive resource (labour) market , firms are price takers. The Marginal Revenue Product (MRP) depends on MPL × price of output. As more labour is employed, marginal productivity typically falls. This makes MRP decline as employment increases. Therefore, the MRP curve is downward sloping . Last verified on 22-04-2026

6. Old age pension payment is transfer payment.

بوڑھاپے کی پنشن ایک ٹرانسفر پیمنٹ ہے۔

Check answer and explanation

Answer: True

Explanation Transfer payments are payments made without receiving any goods or services in return. Old age pension is given by the government to support elderly people. It is not related to current production of goods and services . Therefore, it is classified as a transfer payment . Last verified on 23-04-2026

7. The regression R² is a measure of?

ریگریشن میں آر اسکوائر کس چیز کی پیمائش کرتا ہے؟

Check answer and explanation

Answer: The goodness of fit of your regression line.

Explanation R² (R-squared) is a statistical measure in regression analysis. It shows how well the regression line fits the observed data. It represents the proportion of variation explained by the model. A higher R² means a better fit . It is called the goodness of fit measure . Last verified on 22-04-2026

8. Raw materials that are remaining at the end of the reporting period are treated as ______?

خام مال جو رپورٹنگ کی مدت کے اختتام پر باقی ہیں ان کو ______ سمجھا جاتا ہے؟

Check answer and explanation

Answer: Current assets

Explanation Raw materials are considered inventory , which falls under current assets on the balance sheet. They are expected to be used or sold within one year as part of the production process.

9. Which one of the following is NOT an essential element of a State?

مندرجہ ذیل میں سے کون سا ریاست کا لازمی عنصر نہیں ہے؟

Check answer and explanation

Answer: Economy

Explanation Economy is not considered an essential element. The four essential elements of a State are : Population Territory Government Sovereignty

10. A good indicator of economic growth is the relationship between gross investment and depreciation.

اقتصادی ترقی کا ایک اچھا پیمانہ مجموعی سرمایہ کاری اور تنزلی کے درمیان تعلق ہے۔

Check answer and explanation

Answer: True

Explanation Economic growth depends on the increase in productive capacity of an economy . Gross investment adds new capital, while depreciation reduces existing capital stock. If investment is greater than depreciation , capital stock increases. This leads to higher production capacity and economic growth. So, this relationship is a good indicator of economic growth. Last verified on 23-04-2026

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