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.
مندرجہ ذیل میں سے کون سی چیز پیداواری امکانات کی منحنی کی مقعر شکل کی وضاحت کرتی ہے؟
A. None of these
B. Decreasing opportunity cost
C. Increasing opportunity cost
D. Increasing and then decreasing opportunity costs
Check answer and explanation
Answer: Increasing opportunity cost
Explanation The Production Possibility Curve (PPC) shows different combinations of two goods an economy can produce. Its concave shape shows that opportunity cost increases as production shifts from one good to another. This happens because resources are not equally efficient in all uses. As more of one good is produced, more units of the other good must be sacrificed. This is a key concept in economics called increasing opportunity cost . Last verified on 23-04-2026
Explanation A custom is a tax imposed on goods that are imported into or exported out of a country. This tax is primarily used to regulate trade, protect domestic industries, and generate revenue for the government.
Explanation Total Revenue (TR) is the total income earned by a firm . It is calculated by multiplying price (P) and quantity (Q) . Formula: TR = P × Q It shows total sales earnings of a firm. Last verified on 24-04-2026
عام طور پر معاشی مندی میں بے روزگاری ______ ہوتی ہے اور معاشی ترقی میں ______ ہوتی ہے؟
A. Rises; falls
B. None of these
C. Falls; rises
D. Falls; falls
Check answer and explanation
Answer: Rises; falls
Explanation Unemployment changes with the business cycle in an economy. During recessions, economic activity slows down and jobs decrease. During expansions, production and employment increase. So unemployment moves opposite to economic growth. It rises in recessions and falls in expansions. Last verified on 22-04-2026
مارکیٹ ڈیمانڈ کَرْو ہمیشہ تمام خریداروں کی انفرادی ڈیمانڈ کروز کو افقی طور پر جمع کر کے حاصل کی جاتی ہے۔
A. True
B. False
Check answer and explanation
Answer: True
Explanation A market demand curve shows total demand for a good in a market. It is derived by combining the demand of all individual consumers. This combination is done by adding quantities horizontally at each price level. It gives the total quantity demanded in the market at different prices. Therefore, the statement describes a correct economic concept. Last verified on 23-04-2026
موثر ذریعۂ تبادلہ بننے کے لیے رقم میں درج ذیل میں سے کون سی خصوصیت ضروری نہیں ہے؟
A. Convertibility into precious metals
B. Divisibility
C. High value relative to its weight
D. General acceptability
Check answer and explanation
Answer: Convertibility into precious metals
Explanation For money to work efficiently as a medium of exchange, it must have qualities like divisibility, acceptability, and portability (high value per weight). These features make transactions easy and practical . However, convertibility into precious metals is not necessary in modern economies. Last verified on 23-04-2026
مندرجہ ذیل میں سے کون سی چیز مارکیٹ فیلئر کی وجہ نہیں ہے؟
A. Monopsony power
B. Flexible price
C. Monopoly power
D. The neglect of externalities
Check answer and explanation
Answer: Flexible price
Explanation Market failure occurs when the free market fails to allocate resources efficiently. It happens due to monopoly power, externalities, and other imperfections . When prices are flexible, markets can adjust smoothly to supply and demand. Flexible prices actually help markets function efficiently, not fail . So, it is not a reason for market failure . Last verified on 23-04-2026
ذاتی آمدنی حاصل کرنے کے لیے قومی آمدنی میں کون سی چیزیں شامل کی جاتی ہیں؟
A. Both A and B
B. Business transfer payments
C. None of these
D. Government transfer payments
Check answer and explanation
Answer: Both A and B
Explanation Personal Income (PI) is the income actually received by individuals. It is derived from National Income (NI) after adjustments. To convert NI into PI , we add transfer payments such as business and government transfers . These are incomes received but not earned from production. Last verified on 23-04-2026
Explanation MFN stands for Most Favored Nation . It is a principle in international trade (WTO system). It means giving equal trade treatment to all member countries. If one country gets benefits, others must also get the same. Last verified on 24-04-2026
Explanation As per the Economic Survey of Pakistan 2024-25 , the total installed capacity of electricity (end March FY2025) was 46,605 MW . This figure represents a 1.6% increase compared to the installed capacity of 45,888 MW in the same period of the previous fiscal year.
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