Practise Economics MCQs MCQs in General Knowledge. Attempt multiple-choice questions, check answers and revise related subtopics.
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.
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Answer: True
Explanation The consumption function is written as C = a + bY. Here, C is consumption and Y is income. Consumption depends on income, so Y is the determining factor. The variable that influences another is called the independent variable . Therefore, income (Y) is the independent variable. Last verified on 23-04-2026
وارنٹڈ شرحِ نمو سے کیا مراد ہے؟
Answer: The rate of growth which would make planned investment equal to realized investment
Explanation The warranted rate of growth is a concept from Harrod-Domar Model . It is the growth rate at which the economy remains in equilibrium. At this rate, planned (desired) investment equals actual (realized) investment. If growth deviates, the economy faces instability like inflation or unemployment. Last verified on 22-04-2026
پاکستان کس قسم کا زر مبادلہ نظام اختیار کر رہا ہے؟
Answer: Managed float through Bank
Explanation Pakistan’s exchange rate system is not fully fixed or fully free-floating. It follows a managed floating exchange rate system , where the currency value is mainly market-driven but regulated by the central bank . The State Bank of Pakistan intervenes when necessary to stabilize the rupee. This system combines flexibility with control. Last verified on 23-04-2026
ایک سال سے کم عمر بچوں کی اموات کی شرح کو کیا کہتے ہیں؟
Answer: Infant mortality rate
Explanation Population studies use specific indicators to measure births and deaths. For infants (under age 1), death rates are measured separately. This helps assess health conditions and child survival . The correct term for deaths of infants is infant mortality rate (IMR). It is an important demographic indicator. Last verified on 23-04-2026
یہ ظاہر کرتا ہے کہ حقیقی جی ڈی پی کس طرح بدلتا ہے جب محنت (لیبر) کی مقدار تبدیل ہوتی ہے، جبکہ باقی عوامل مستقل رہتے ہیں۔ _____
Answer: Production function
Explanation It explains the relationship between labour input and real GDP . When other factors (capital, technology) remain constant, output depends on labour. This relationship is called the production function . Last verified on 22-04-2026
جب کل افادیت بڑھ رہی ہو تو حاشیائی افادیت کیا ہوگی؟
Answer: Increasing at a decreasing rate
Explanation In economics , total utility is the total satisfaction gained from consumption. Marginal utility is the additional satisfaction from consuming one more unit. When total utility is increasing, marginal utility is positive. But it gradually starts to fall as consumption increases. So, marginal utility increases at a decreasing rate . Last verified on 23-04-2026
ماہرینِ معاشیات کے مطابق بجٹ خسارہ کب نقصان دہ ہوتا ہے؟
Answer: All of these
Explanation A budget deficit occurs when government spending exceeds its revenue. It can affect the economy by increasing demand for borrowed funds. This may raise interest rates and reduce private investment. It can also “ crowd out ” private sector spending. Last verified on 23-04-2026
سوویت یونین ایک مخلوط معیشت کی اچھی مثال ہے کیونکہ یہ صنعتی اور زرعی دونوں اشیاء پیدا کرتا تھا۔
Answer: False
Explanation The Soviet Union operated under a centrally planned economy where the government controlled production, pricing, and distribution . Although it produced both industrial and agricultural goods , this does not make it a mixed economy. In a mixed economy , both private sector and government coexist , which was not the case in the Soviet system. Therefore, the statement is false . Last verified on 23-04-2026
یورپ کی سب سے بڑی معیشت کس کو سمجھا جاتا ہے؟
Answer: Germany
Explanation Germany 's economy has consistently largest economy in Europe since 1980 , even before the reunification of West and East Germany.
درآمد شدہ اشیاء (جیسے مشینری، تیل) کی قیمت برآمد شدہ اشیاء (جیسے ٹیکسٹائل، چاول) سے زیادہ ہو تو اس صورتحال کو کیا کہتے ہیں؟
Answer: Trade Deficit
Explanation When a country imports more goods than it exports, it creates a trade deficit . It means money going out is more than money coming in from trade. Common imports: oil, machinery, electronics. Common exports: textiles, rice, sports goods. It is a persistent economic imbalance in trade balance. Last verified on 11-04-2026
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