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.
مندرجہ ذیل میں سے کون سی پالیسی تجارتی خسارے اور بلند افراطِ زر سے نمٹنے کے لیے سب سے مناسب ہے؟
A. Imposing tariffs on imports
B. Devaluing of the country's currency
C. None of these
D. Increasing taxes and reducing government expenditure
Check answer and explanation
Answer: Increasing taxes and reducing government expenditure
Explanation A trade deficit means imports are greater than exports. High inflation means prices are rising in the economy. The best policy should reduce demand in the economy and control inflation. Contractionary fiscal policy helps achieve both goals. So, increasing taxes and reducing government spending is most appropriate. Last verified on 23-04-2026
سرکولر فلو ماڈل یہ دکھاتا ہے کہ اشیاء اور خدمات کی قیمتیں کیسے مقرر ہوتی ہیں۔
A. False
B. True
Check answer and explanation
Answer: False
Explanation The circular flow model shows the movement of goods, services, and money in an economy. It explains interaction between households and firms in product and factor markets. However, it does not directly explain how prices are determined. Price determination is explained by demand and supply analysis. Therefore, the statement is incorrect . Last verified on 23-04-2026
A. List of countries under increased monitoring for financial risks
B. List of countries under normal trade rules
C. List of military alliances
D. List of developed countries
Check answer and explanation
Answer: List of countries under increased monitoring for financial risks
Explanation The Grey List refers to countries at risk of money laundering or terrorism financing. The monitoring body is the Financial Action Task Force (FATF). Formally known as "Jurisdictions under Increased Monitoring," Last updated question NS on 10 MAY 2026
سال 2022-23 میں پاکستان کی معیشت کو سب سے بڑا چیلنج کیا درپیش تھا؟
A. Current account deficit
B. Low literacy rate
C. Rising inflation
D. Low employment
Check answer and explanation
Answer: Rising inflation
Explanation In 2022–23, Pakistan faced severe economic instability. The biggest issue was rising inflation (high prices). Inflation reached multi-decade highs, affecting daily life . It reduced purchasing power of people . Last verified on 24-04-2026
A. Buyers are not much influenced by prices of competing products
B. A fall in price is more than offset by an increase in quantity demanded, so that total revenue rises
C. The good is probably a necessity, so price has little effect on quantity demanded
D. None of these
Check answer and explanation
Answer: A fall in price is more than offset by an increase in quantity demanded, so that total revenue rises
Explanation Demand is called elastic when quantity demanded changes more than proportionately to a change in price. This usually happens when a fall in price causes a large increase in quantity demanded, raising total revenue. It is common for non-essential goods and substitutes . Thus, total revenue increases when price decreases. Last verified on 23-04-2026
جب کوئی غیر ملکی کمپنی اپنی برآمدات کو پیداوار کی لاگت سے کم قیمت پر فروخت کرے تو اسے کیا کہتے ہیں؟
A. A tariff
B. None of these
C. Learning-by-doing
D. Dumping
Check answer and explanation
Answer: Dumping
Explanation Dumping occurs when goods are sold in foreign markets at a price lower than their production cost. It is often used to eliminate competitors and gain market control. Last verified on 22-04-2026
مندرجہ ذیل میں سے کون سا اولیگوپولی ماڈل مشترکہ منافع کو زیادہ سے زیادہ کرنے سے متعلق ہے؟
A. Cournot model
B. Edgeworth model
C. Collusive model
D. Bertrand model
Check answer and explanation
Answer: Collusive model
Explanation In oligopoly , few firms dominate the market. The collusive model involves firms cooperating with each other. They act like a monopoly to maximize joint profits. Firms may form cartels or agreements . Last verified on 24-04-2026
Explanation As of recent global rankings, China is the second largest economy in the world by nominal GDP, after the United States . It plays a major role in global trade, manufacturing, and finance.
کاب ڈگلس پیداوار فنکشن میں کون سا قانون لاگو ہوتا ہے؟
A. The law of increasing returns to scale holds
B. The law of constant returns to scale holds
C. None of these
D. The law of diminishing returns to scale holds
Check answer and explanation
Answer: The law of constant returns to scale holds
Explanation The Cobb–Douglas production function explains the relationship between inputs (labor & capital) and output. In its standard form , it assumes constant returns to scale. This means if all inputs are increased by the same proportion , output increases in the same proportion. It is widely used in production and growth analysis . Last verified on 22-04-2026
مندرجہ ذیل تین اقتصادی ترقی کے اشارے میں سے کون سا ہے؟
A. None of these
B. Capital, Industry, Agriculture
C. The Consumer Price Index (CPI), Gross Domestic Product (GDP), Unemployment Figures
D. Consumption, Investment, Serving
Check answer and explanation
Answer: The Consumer Price Index (CPI), Gross Domestic Product (GDP), Unemployment Figures
Explanation The three main economic growth indicators are the Consumer Price Index (CPI), Gross Domestic Product (GDP), and Unemployment Figures. These indicators measure inflation, overall economic output, and job market health , respectively.
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