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.
اگر کسی شے کے حاشیاتی سماجی فوائد اس کی حاشیاتی سماجی لاگت سے زیادہ ہوں تو کیا نتیجہ نکلتا ہے؟
A. The Pareto-optimal quantity of the good exceeds the equilibrium quantity
B. None of these
C. Then its private benefits must also exceed its private costs
D. The government should subsidize its production
Check answer and explanation
Answer: The Pareto-optimal quantity of the good exceeds the equilibrium quantity
Explanation When marginal social benefit (MSB) is greater than marginal social cost (MSC), society gains more from additional production . This indicates underproduction in the market due to positive externalities . The efficient (optimal) level of output should be higher than the current equilibrium. Thus, the Pareto-optimal quantity exceeds the equilibrium quantity. Last verified on 23-04-2026
بین الاقوامی تجارت میں پروٹیکشنزم نیم محدود تجارت کی نمائندگی کرتا ہے۔
A. False
B. True
Check answer and explanation
Answer: True
Explanation Protectionism in international trade refers to government policies that restrict free trade . It includes tariffs, quotas, and other barriers to protect domestic industries. Trade is not fully free nor fully closed , but restricted to some extent. Therefore, it is often described as semi-restricted trade . Last verified on 23-04-2026
صحت، انسانی سرمایہ، ماحولیاتی معیار، سماجی تحفظ اور غذائی تحفظ کی مساوات _____ کے تصور کے تحت شامل ہیں؟
A. Aggregate Factor Inputs
B. None of these
C. UN Human Rights
D. Inclusive Growth
Check answer and explanation
Answer: Inclusive Growth
Explanation The concept of Inclusive Growth encompasses various dimensions, including: Equity of health Human capital Environmental quality Social protection Food security It aims to ensure that economic growth benefits all segments of society and contributes to sustainable development.
جب ماریشس کی معیشت مکمل روزگار کی سطح پر ہو تو اس کا کیا مطلب ہے؟
A. None of these
B. Everybody is employed
C. The economy is in the boom phase of the trade cycle
D. There is no deficiency of demand
Check answer and explanation
Answer: There is no deficiency of demand
Explanation Full employment means all available resources, especially labor , are fully utilized. At this level, the economy is producing at its maximum sustainable output. There is no unemployment caused by lack of demand (no cyclical unemployment). However, structural or frictional unemployment may still exist. So, it mainly means there is no deficiency of demand in the economy. Last verified on 23-04-2026
جبر کے ذریعے حاصل کی جانے والی خدمات کو کیا کہتے ہیں؟
A. Bonded labour
B. Forced labour
C. Child labour
D. None of these
Check answer and explanation
Answer: Forced labour
Explanation “ Services obtained through compulsion ” refers to work done against a person’s will. It involves pressure, threat, or force rather than free choice. Such labour is not voluntary and violates basic rights. This concept is widely recognized in labour laws and human rights . It is best described as forced labour . Last verified on 23-04-2026
Explanation The Phillips Curve shows an inverse relationship between inflation and unemployment . When inflation increases, unemployment decreases, and vice versa. It is used in macroeconomics to study trade-offs in the economy. It helps policymakers understand economic stability choices. Last verified on 24-04-2026
ایک ہی معیار کی مصنوعات کے لیے مختلف قیمتیں _____ کہلاتی ہیں؟
A. Price inflation
B. None of these
C. Price fixation
D. Price discrimination
Check answer and explanation
Answer: Price discrimination
Explanation Price discrimination occurs when the same product is sold at different prices to different customers. It is a common practice in markets to maximize profits based on customer willingness to pay. Additional information : Types of price discrimination: First-degree – individual pricing Second-degree – bulk or quantity discounts Third-degree – group-based pricing (students, seniors) Airline tickets – different prices for same seat on same flight Movie tickets – matinee vs. evening pricing Last verified on 19-01-2026
A. The decrease in government spending that occurs when private investment increases
B. The increase in private investment that occurs when government borrowing decreases
C. The decrease in private investment that occurs when government borrowing increases
D. The increase in government spending that occurs when private investment decreases
Check answer and explanation
Answer: The decrease in private investment that occurs when government borrowing increases
Explanation Crowding out is a macroeconomic concept. It occurs when government borrows more money from the market. This increases interest rates and reduces private investment . So, private sector investment is “ crowded out ” by government borrowing. Last verified on 24-04-2026
مندرجہ ذیل میں سے کون سی خصوصیت اقتصادی ترقی کی بنیادی شرط نہیں ہے؟
A. Markets
B. Active fiscal and monetary policy
C. Property rights
D. Monetary exchange
Check answer and explanation
Answer: Active fiscal and monetary policy
Explanation Economic growth depends on certain basic institutional conditions. These include markets, property rights, and monetary exchange systems. They help ensure production, trade, and investment stability. Fiscal and monetary policy are government tools, not preconditions . Last verified on 22-04-2026
مندرجہ ذیل حالات میں سے طلبہ کی افراط زر کی نمائندگی کرتا ہے؟
A. None of these
B. Increase in indirect taxes
C. Increase in production costs due to higher raw material prices
D. Excess demand in the economy leading to rising prices
Check answer and explanation
Answer: Excess demand in the economy leading to rising prices
Explanation Demand-pull inflation occurs when aggregate demand exceeds aggregate supply , causing prices to rise. It reflects a “ too much money chasing too few goods ” situation.
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