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.

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Economics MCQs: questions and answer review

Try each question before opening its answer. Record the concept behind each mistake and revisit it during your next practice session.

71. Ceteris paribus, inflation will lead to?

دیگر تمام حالات برابر ہوں تو مہنگائی کس چیز کا باعث بنے گی؟

Check answer and explanation

Answer: A decrease in the external value of money

Explanation Inflation means a general rise in the price level in an economy. When prices increase, the value of money decreases. This reduces the purchasing power of currency in international markets. As a result, the external value (exchange value) of money falls. So, inflation leads to a decrease in the external value of money . Last verified on 23-04-2026

72. Currently in which country there were massive protests against the economic crisis and oil shortage?

اس وقت کس ملک میں معاشی بحران اور تیل کی قلت کے خلاف زبردست مظاہرے ہو رہے ہیں؟

Check answer and explanation

Answer: Sri-Lanka

Explanation In early 2022, Sri Lankans started experiencing power cuts and shortages of basics such as fuel. The rate of inflation rose t o 50% a year. NA23-7-2023

73. When the State Bank wants to decrease money supply in the country, it?

جب اسٹیٹ بینک ملک میں کرنسی کی سپلائی کم کرنا چاہتا ہے تو _____؟

Check answer and explanation

Answer: Sells government securities

Explanation When the State Bank wants to decrease the money supply, it sells government securities. This action takes money out of circulation as buyers pay for the securities. This thereby reducing the amount of money available in the economy.

74. What does the term "Crypto Winter" mean?

کریپٹو ونٹر کا مطلب کیا ہے؟

Check answer and explanation

Answer: A prolonged decline in cryptocurrency prices

Explanation “ Crypto Winter ” refers to a prolonged period of falling cryptocurrency prices . During this time, market values drop sharply, and investor confidence is low. Additional information: Examples: 2018 crypto crash after Bitcoin’s 2017 peak. Term is similar to a “ bear market ” in traditional finance. Last verified on 22-01-2026

75. Theory of comparative advantage was presented by?

تقابلی برتری کا نظریہ کس نے پیش کیا؟

Check answer and explanation

Answer: David Ricardo

Explanation The Theory of Comparative Advantage explains international trade benefits. It was developed by David Ricardo . Published in 1817 ( Principles of Political Economy and Taxation ). Countries should specialize in goods where they have lower opportunity cost. This increases global efficiency and trade gains. Last verified on 24-04-2026

76. Which of the following statements about a fixed input is true? The quantity of output that the firm can produce with it is fixed, Its price is fixed, The quantity of it that a firm can use in the short run is fixed, None of these

مندرجہ ذیل میں سے کون سا بیان مقررہ وسیلہ کے بارے میں درست ہے؟

Check answer and explanation

Answer: The quantity of it that a firm can use in the short run is fixed

Explanation In economics , inputs are factors used in production. A fixed input cannot be changed in the short run . Examples include land, machinery, and buildings . Firms cannot increase or decrease its quantity quickly. Therefore, its quantity remains fixed in the short run . Last verified on 22-04-2026

77. The largest indirect Tax revenue collection is through?

بالواسطہ ٹیکس کی سب سے زیادہ آمدنی کس کے ذریعے حاصل ہوتی ہے؟

Check answer and explanation

Answer: GST

Explanation Indirect taxes are levied on goods and services rather than income. Among them, General Sales Tax (GST) is the largest source of indirect tax revenue in many countries, including Pakistan. It is charged on consumption of goods and services . Because of its broad base , it generates high revenue. Last verified on 23-04-2026

78. Poverty line is determined by?

غربت کی لکیر کا تعین کس بنیاد پر کیا جاتا ہے؟

Check answer and explanation

Answer: Per Capita calories intake

Explanation The poverty line is the minimum level of income needed to meet basic needs. Traditionally, it is determined based on minimum calorie intake required for survival. This ensures individuals can afford essential food for healthy living. Hence, calorie intake is the standard measure in many countries . Last verified on 23-04-2026

79. The recent IMF package to Pakistan includes which program?

پاکستان کے لیے حالیہ آئی ایم ایف پیکج کس پروگرام پر مشتمل ہے؟

Check answer and explanation

Answer: Extended Fund Facility (EFF)

Explanation The recent IMF package for Pakistan is a 37-month, $7 billion loan approved in September 2024 Under the Extended Fund Facility (EFF). In December 2025, around $1 billion was released under the EFF.

80. Which of the following statements about economic growth is false? Economic growth can be helped by using tidal power, Economic growth solves the economic problem, Economic growth can be helped by having new technology, Economic growth can be helped with more education

مندرجہ ذیل میں سے اقتصادی ترقی کے بارے میں کون سا بیان غلط ہے؟

Check answer and explanation

Answer: Economic growth solves the economic problem

Explanation Economic growth means an increase in a country’s production (GDP). It can be improved by better resources and efficiency . Factors like technology, education, and energy sources support growth. However, growth does not remove scarcity completely . Last verified on 22-04-2026

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