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.
ٹریک-ٹو ڈپلومیسی کا استعمال کس کے لیے کیا جاتا ہے؟
A. Managing Relations b/w two countries using official chances
B. Managing Relations b/w two countries using unofficial channels
C. None of these
D. Diplomacy by diplomats during war
Check answer and explanation
Answer: Managing Relations b/w two countries using unofficial channels
Explanation Track-II Diplomacy involves non-governmental actors s uch as academics, former officials, and experts. It is used to resolve conflicts, build trust, and explore s olutions without formal government negotiations. Unlike official diplomacy (Track-I) , it is informal and flexible.
مہنگائی کا خلا حکومت کے اخراجات بڑھانے اور ٹیکس کم کرنے سے ختم کیا جا سکتا ہے۔
A. True
B. False
Check answer and explanation
Answer: False
Explanation An inflationary gap occurs when aggregate demand is greater than full-employment output. This leads to rising prices (inflation) in the economy. To control it, government should reduce total demand in the economy. This is done by decreasing government spending or increasing taxes. So, the given statement is incorrect . Last verified on 23-04-2026
Explanation Tariff refers to a tax or duty imposed by a government on importe d goods or services. It is a common instrument of trade policy used to protect domestic industries and generate revenue.
Explanation A competitive firm is a price taker in both product and labour markets. It hires labour to maximize profit . The firm compares wage (w) with the value of labour’s output. Hiring continues until cost equals benefit. Condition: w = MPL × p (Value of Marginal Product). Last verified on 22-04-2026
مندرجہ ذیل میں سے کون سا عمل مجموعی طلب کے منحنی کو بائیں طرف منتقل کر سکتا ہے؟
A. An increase in the money supply
B. Expansionary demand management policies
C. An increase in government spending
D. Contractionary demand management policies
Check answer and explanation
Answer: Contractionary demand management policies
Explanation The Aggregate Demand (AD) curve shifts left when total spending in the economy decreases . This happens due to contractionary (tight) economic policies. It leads to lower consumption, investment, and output . Result: economic slowdown. Last verified on 24-04-2026
Explanation Inflation usually occurs due to excess demand, but it can also happen without it. When production costs increase , firms raise prices even if demand is stable. A key cause is higher wages not matched by productivity growth. This increases cost of production and leads to cost-push inflation . Therefore, inflation can occur due to wage increases exceeding productivity . Last verified on 23-04-2026
Explanation The term franchise means the ability and right of someone to vote in an election. The universal Adult Franchise means that all citizens who are 18 years and above are free to vote.
مندرجہ ذیل میں سے کس میں اضافہ سنگاپور میں بس سروسز کی سپلائی میں اضافہ کرے گا؟
A. The number of bus companies
B. The price of diesel
C. The demand for bus services
D. None of these
Check answer and explanation
Answer: The number of bus companies
Explanation The supply of a service depends on factors that affect production and operation costs. When costs become easier to manage or more firms enter the market, supply increases . Higher demand or higher input costs do not directly increase supply. More firms mean more buses available in the market. So, supply increases when number of suppliers increases. Last verified on 23-04-2026
Explanation Scarcity means limited resources compared to unlimited wants. When goods are scarce , they have value and a price in the market. If goods were not scarce , everyone could get them freely in unlimited quantity . Such goods are called free goods in economics. Therefore, the statement correctly explains the concept of scarcity . Last verified on 23-04-2026
مندرجہ ذیل میں سے کون سا مالیاتی پالیسی کا آلہ ہے؟
A. Discount rate
B. Government spending
C. Reserve requirement
D. Open market operations
Check answer and explanation
Answer: Government spending
Explanation Government spending is a tool of fiscal policy. Here is tye tools of Fiscal Policy: Government Spending Taxation Transfer Payments Fiscal Expansion Fiscal Contraction Last verified on 24-04-2026
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