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.
Explanation In monopolistic competition, many firms sell similar but differentiated products. In the long run , new firms enter the market. This reduces profits until economic profit becomes zero. Firms only earn normal profit in long-run equilibrium . Last verified on 24-04-2026
A. Government spends the same amount of money which it receives in revenue
B. Government spends less money than it receives as revenue
C. None of these
D. Government spends more money than it receives as revenue
Check answer and explanation
Answer: Government spends more money than it receives as revenue
Explanation Deficit financing occurs when a government spends more than its revenue. It often does so by borrowing or printing additional currency to cover the gap. This is typically done to stimulate the economy.
مندرجہ ذیل میں سے کون سی پالیسی اصل آمدنی کی تقسیم کو زیادہ غیر مساوی بنا سکتی ہے؟
A. A rise in the State Pension
B. A ceiling on the number of hours that people were allowed to work each week
C. A policy to encourage more low income households to buy shares in companies
D. An effective policy to reduce bankers’ bonuses
Check answer and explanation
Answer: A policy to encourage more low income households to buy shares in companies
Explanation Policies that increase inequality usually benefit high-income groups more. Measures like pensions or limits on working hours tend to reduce inequality . Encouraging low-income households to buy shares may increase income gaps if returns differ. Last verified on 22-04-2026
Explanation Exchange rate depreciation, fiscal deficit, and rising international commodity prices all contribute to inflation. Together, these factors increase production costs and import prices , raising overall price levels in Pakistan.
کسی ملک کے باقی دنیا کے لیے مجموعی مالی ذمہ داریاں کیا کہلاتی ہیں؟
A. National Liabilities
B. None of these
C. Total Burden
D. External Debt
Check answer and explanation
Answer: External Debt
Explanation External debt refers to the total amount of money a country owes to foreign creditors. It includes loans, bonds, and other financial obligations. Governments, corporations, and private sectors can all contribute to external debt.
جب طلب اور رسد دونوں کسی وجہ سے دائیں طرف منتقل ہو جائیں تو کیا ہوتا ہے؟
A. The quantity traded and price of the good increase for sure
B. Quantity traded increases for sure but nothing could be said about prices
C. Quantity traded increases for sure but prices decrease
D. Quantity traded increases for sure but prices remain constant
Check answer and explanation
Answer: Quantity traded increases for sure but nothing could be said about prices
Explanation When demand and supply both increase (shift right) in a market. The quantity traded always increases . However, the price effect is uncertain. Price may increase, decrease, or remain stable depending on magnitude of shifts . Last verified on 24-04-2026
_________ پاکستان کا دوسرا سب سے بڑا درآمد کنندہ ہے
A. Saudi Arabia
B. Chine
C. UAE
D. None
Check answer and explanation
Answer: UAE
Explanation Top Importer of Pakistan fiscal year (2020-21) 1. China 2. United Arab Emirates (UAE) 3. Singapore. Petroleum is the largest-import item of Pakistan ND-21-5-2023
اگر معیشت میں کساد بازاری کا فرق ہو تو طویل مدت میں اجرت، بے روزگاری اور قیمتوں پر کیا اثر ہوتا ہے؟
A. Falls, rises, falls
B. None of these
C. Falls, falls, falls
D. Rises, rises, rises
Check answer and explanation
Answer: Falls, falls, falls
Explanation A recessionary gap occurs when actual output is below potential output. There is excess supply of labour → unemployment is high. In the long run, wages adjust downward . Lower wages reduce costs and shift supply . This leads to falling prices and falling unemployment. Last verified on 22-04-2026
حکومت کی طرف سے کرنسی کی قدر میں کمی کو کیا کہتے ہیں؟
A. Cheapness
B. None of these
C. Devaluation
D. Inflation
Check answer and explanation
Answer: Devaluation
Explanation Devaluation means a deliberate decrease in the official value of a country’s currency. Usually done by the government or central bank . Helps boost exports by making them cheaper internationally. Can increase import costs . Common in countries facing trade deficits . Last verified on 06-02-2026