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.
ایک ملک میں ایک سال میں پیدا ہونے والی تمام اشیاء اور خدمات کو کیا کہتے ہیں؟
A. GDP
B. None of these
C. NDP
D. GNP
Check answer and explanation
Answer: GDP
Explanation GDP (Gross Domestic Product) measures the total value of all goods and services produced within a country in a year. Does not include income from abroad. Used to assess economic performance and growth. Expressed in monetary terms (currency). Helps in policy-making and comparing economies. Last verified on 12-02-2026
B. Deposits of member banks at the Federal reserve
C. Euro-dollars and foreign deposits at the Federal Reserve
D. Reserve at the Federal Reserve plus vault cash
Check answer and explanation
Answer: Reserves plus currency in circulation
Explanation The monetary base is also called high-powered money . It includes currency held by public + bank reserves . It is the foundation of the money supply in an economy. Central bank controls it directly. Last verified on 24-04-2026
Explanation Pakistan's largest exports go to the United States . the most common destinations for exports in Pakistan are the: United States ($5.51B) China ($3.25B) Germany ($2.53B) United Kingdom ($2.21B) United Arab Emirates ($1.28B)
B. US Dollar, Euro, Japanese Yen, British Pound, and Chinese Yuan
C. US Dollar, Indian Rupee, Euro, Dirham, Riyal
D. None of these
Check answer and explanation
Answer: US Dollar, Euro, Japanese Yen, British Pound, and Chinese Yuan
Explanation The basket of main currencies refers to the set of currencies used to determine the value of certain international financial assets. In the case of IMF Special Drawing Rights (SDRs) , the basket includes major global currencies. These are selected based on their importance in international trade and finance. Last verified on 23-04-2026
مندرجہ ذیل میں سے کس فصل کو فی ہیکٹر سب سے زیادہ پانی کی ضرورت ہوتی ہے؟
A. Barley
B. Wheat
C. Sugarcane
D. Maize
Check answer and explanation
Answer: Sugarcane
Explanation Sugarcane needs the maximum water per hectare among these crops. It requires extensive irrigation due to its high water demand for growth and development.
A. The unemployment rate that exists when the economy is in a boom
B. The unemployment rate that exists when the economy is at full employment
C. The unemployment rate that exists when the economy is in a recession
D. The unemployment rate that exists when the economy is in a depression
Check answer and explanation
Answer: The unemployment rate that exists when the economy is at full employment
Explanation The natural rate of unemployment exists when the economy is at full employment level. It includes frictional and structural unemployment. It does not include cyclical unemployment. It represents a stable long-run equilibrium situation. Last verified on 24-04-2026
آمدنی میں فرق کو مکمل طور پر انسانی سرمائے میں سرمایہ کاری کے فرق سے بیان کیا جا سکتا ہے۔
A. True
B. False
Check answer and explanation
Answer: False
Explanation Human capital includes education, skills, and training . It plays an important role in determining earnings . However, earnings differences are influenced by many other factors as well. These include experience, talent, discrimination, and market conditions. So, human capital alone cannot fully explain all differences in earnings. Last verified 23-04-2026
Explanation Sales tax is an indirect tax imposed on goods and services . Although the seller collects the tax , the actual burden is usually passed to consumers through higher prices. Therefore, the incidence (final burden) of sales tax falls on the consumer. This is a key concept in tax incidence theory. Last verified on 23-04-2026
عام شے کے لیے قیمت میں اضافے کا آمدنی اثر کھپت کو کم کرتا ہے۔
A. True
B. False
Check answer and explanation
Answer: True
Explanation When the price of a good increases , real income (purchasing power) falls. For a normal good , lower real income leads to lower consumption. This is known as the income effect . So, both substitution and income effects reduce demand. Therefore, consumption decreases . Last verified on 23-04-2026
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