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.

131. A binary variable is often called a?

بائنری متغیر کو عام طور پر کیا کہا جاتا ہے؟

Check answer and explanation

Answer: Dummy variable

Explanation A binary variable takes only two values (e.g., 0 or 1). It represents categories like yes/no or true/false . It is widely used in regression and data analysis. It helps to include qualitative factors in models. It is commonly called a dummy variable . Last verified on 22-04-2026

132. In Keynesian theory equality between saving and investment is brought about by changes in the?

کینزی نظریہ کے مطابق بچت اور سرمایہ کاری میں برابری کس چیز کی تبدیلی سے آتی ہے؟

Check answer and explanation

Answer: Level of income

Explanation In Keynesian Theory , saving (S) and investment (I) are brought into equality through changes in income. If saving exceeds investment, income falls; if investment exceeds saving, income rises . Thus, equilibrium is achieved by adjusting the level of income , not the interest rate. This is a core idea of Keynesian macroeconomics. Last verified on 22-04-2026

133. The demand for labour curve?

محنت کی طلب کا منحنی کیسا ہوتا ہے؟

Check answer and explanation

Answer: Slopes downward

Explanation The demand for labour is a derived demand based on production needs. Firms hire more workers when wages are lower. As wages increase, firms demand less labour. This shows an inverse relationship between wage and labour demand. Therefore, the demand curve slopes downward . Last verified on 22-04-2026

134. What is the world's freest economy, with lowest taxes and lack of trade barriers is ?

دنیا کی سب سے آزاد معیشت، سب سے کم ٹیکس اور تجارتی رکاوٹوں کی کمی کے ساتھ کون سی ہے؟

Check answer and explanation

Answer: Hong Kong

Explanation The world's freest economy, often cited for its low taxes and lack o f trade barriers, is Hong Kong.

135. Financial Deficit means?

مالیاتی خسارے کا کیا مطلب ہے؟

Check answer and explanation

Answer: accessed of issuing paper money

Explanation Deficit financing refers to the methods governments use to finance their budget deficits such as issuing bonds or printing more money.

136. TDAP is responsible for _____?

ٹی ڈی اے پی _____ کے لیے ذمہ دار ہے؟

Check answer and explanation

Answer: Export Promotion

Explanation The Trade Development Authority of Pakistan (TDAP) is responsible for promoting exports from Pakistan. It facilitates exporters, provides market research, and organizes trade fairs to enhance the country's trade potential.

137. In monetarist business cycle theory, the short-run aggregate supply curve?

مونیٹرسٹ کاروباری سائیکل تھیوری میں مختصر مدت کی مجموعی رسد وکر کی نوعیت کیا ہوتی ہے؟

Check answer and explanation

Answer: Has a positive slope

Explanation The New Monetarist Business Cycle Theory explains output and price movements using monetary frictions. In the short run, prices and wages do not adjust instantly. Firms increase output when demand rises. This creates a positive relationship between price level and output. So the short-run aggregate supply curve is upward sloping. Last verified on 22-04-2026

138. A fireworks display at a private amusement parts is a public good.

ایک نجی تفریحی پارک میں آتش بازی کا شو ایک عوامی شے ہے۔

Check answer and explanation

Answer: False

Explanation Public goods are those that are non-excludable and non-rival . Examples include national defense and street lighting . A fireworks display at a private amusement park is usually restricted to paying visitors. It is excludable and consumed by those who buy access. So, it is not a public good . Last verified on 23-04-2026

139. A market situation in which there are a few sellers of similar but differentiated products is called _____?

ایسا مارکیٹ ماحول جس میں چند بیچنے والے ہوں اور مصنوعات مماثل مگر مختلف ہوں، اسے کیا کہتے ہیں؟

Check answer and explanation

Answer: Oligopoly

Explanation Oligopoly is a market with a few sellers offering similar but differentiated products. Sellers have significant influence over price and market conditions. Common in industries like automobiles, electronics, and telecom . Last verified on 03-02-2026

140. Which of the following economic systems would government intervention be present?

مندرجہ ذیل میں سے کس معاشی نظام میں حکومت کی مداخلت موجود ہوتی ہے؟

Check answer and explanation

Answer: Mixed and Planned

Explanation Economic systems differ in the level of government control in the economy. In some systems, the government plays a major role in production and distribution . In others, private individuals make most decisions. Government intervention is mainly found where planning or regulation exists. Therefore, mixed and planned economies involve government participation. Last verified on 23-04-2026

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