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.
جب سیلی کسی پسندیدہ چیز کو کم استعمال کرتی ہے تو اس کی کیا چیز بڑھتی ہے؟
A. None of these
B. Total utility is maximized
C. Marginal utility increases
D. Total utility increases
Check answer and explanation
Answer: Marginal utility increases
Explanation Marginal utility theory explains satisfaction from consuming goods. As a person consumes less of a good, each unit becomes more valuable . This follows the law of diminishing marginal utility (reverse case). Scarcity of a liked good increases its importance. Therefore, marginal utility rises when consumption decreases. Last verified on 22-04-2026
لیان اپنی آمدنی کو اس طرح خرچ کرتی ہے کہ ہر چیز پر فی ڈالر حاصل ہونے والی حدی افادیت کیسی ہو؟
A. Is diminishing
B. Is maximised
C. Is increasing
D. None of these
E. Is the same
Check answer and explanation
Answer: Is the same
Explanation In consumer theory, a person maximizes satisfaction (utility) from income. Utility is maximized when spending is optimally distributed. The key rule compares marginal utility per dollar across goods. Consumers adjust spending until no further gain is possible. This happens when marginal utility per dollar is equal for all goods . Last verified on 22-04-2026
“دو ہزار نو کے اینہانسڈ پارٹنرشپ ود پاکستان ایکٹ کے تحت امریکہ پاکستان کو کیا فراہم کرے گا؟”
A. F-16
B. 5 billion$ annually
C. Economic help for generation of electricity
D. 1.5 billion$ annually
Check answer and explanation
Answer: 1.5 billion$ annually
Explanation The Enhanced Partnership with Pakistan Act of 2009, It is also known as the Kerry-Lugar-Berman Act, which authorized the provision of up to $1.5 billion
تمام منافع زیادہ کرنے والی فرمیں مزدوروں کو اس حد تک ملازمت دیتی ہیں جہاں؟
A. Average physical product of labour equals the nominal wage
B. Value of output most greatly exceeds labour's marginal factor cost
C. Marginal product of Labour is at its maximum value
D. Last unit of labour adds equally to total revenue and total cost
Check answer and explanation
Answer: Last unit of labour adds equally to total revenue and total cost
Explanation A profit-maximizing firm hires labour where benefit = cost . This means Marginal Revenue Product (MRP) = Marginal Factor Cost (MFC). The last worker hired adds equal revenue and cost. This is the optimal hiring point. Last verified on 24-04-2026
Explanation China is Pakistan’s largest trade partner. Trade between Pakistan and China increased significantly after CPEC (2015). Both countries signed a Free Trade Agreement (FTA) in 2006. This partnership plays a key role in Pakistan’s economy and infrastructure development.
مارکیٹ اکانومی کن حالات میں وسائل کو مؤثر طریقے سے تقسیم نہیں کر سکتی؟
A. Full employment in certain sectors of the economy
B. Surplus of products
C. Private ownership of property
D. Immobility of the factors of production
Check answer and explanation
Answer: Immobility of the factors of production
Explanation A market economy allocates resources through supply and demand . However, it can fail when resources cannot move freely between uses. Efficiency is disturbed when factors of production are not flexible . If land, labor, or capital cannot shift easily, allocation becomes inefficient. This situation is known as factor immobility . Last verified on 23-04-2026
Explanation Statistics is the branch of science that deals with data . It includes collecting, organizing, presenting, analyzing, and interpreting data. Raw data is first collected and arranged in a meaningful form . Then it is interpreted to draw conclusions . So, statistics involves both collection/organization and interpretation/presentation . Last verified on 23-04-2026
Explanation Money performs important roles in an economy. It is used to buy and sell goods and services. It helps in measuring value of goods . It also helps in saving wealth over time. But barter is not a function of money; it is an old exchange system without money . Last verified on 22-04-2026
Explanation NIKKEI is the Share Price Index of the Tokyo Share Market. It is also known as Nikkei 225, the Nikkei index. Nihon Keizai Shinbun newspaper calculating the NIKKEI Index since 1950.
Explanation Cost-push inflation happens when production costs increase. Firms raise prices to maintain profit margins. This leads to a general rise in price level. Key causes include higher wages and input costs. A major trigger is an increase in oil prices . Last verified on 22-04-2026
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