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.
ممالک ایک دوسرے کے ساتھ تجارت کرتے ہیں کیونکہ ______؟
A. None of these
B. To prevent immigration from other countries
C. To increase population and decrease pollution
D. To get goods and services they do not produce
Check answer and explanation
Answer: To get goods and services they do not produce
Explanation Core Reason for Trade : Comparative Advantage : Countries specialize in producing what they are most efficient at and trade for other goods/services (e.g., Pakistan exports textiles, imports oil). Diverse Needs : No country produces everything it requires (e.g., Japan imports food due to limited arable land).
مندرجہ ذیل میں سے کون سی چیز کسی ملک میں مجموعی کھپت میں اضافہ نہیں کرے گی؟
A. A fail in investment
B. An increase in the availability of credit
C. An increase in Government transfer payments
D. Redistribution of income from high income groups to low income groups
Check answer and explanation
Answer: A fail in investment
Explanation Aggregate consumption depends on income, credit availability, and redistribution of income. When income of low-income groups rises , consumption increases because they spend more. Easy credit and government transfer payments also increase spending in the economy. However, a fall in investment does not directly increase consumption. So, it will not increase aggregate consumption. Last verified on 23-04-2026
سال بہ سال ایک ہی فصل کی کاشت کو _____ کہا جاتا ہے؟
A. All of the above
B. Mono Cropping
C. Single Cropping
D. Double Cropping
Check answer and explanation
Answer: Mono Cropping
Explanation Mono cropping refers to the practice of growing the same crop on the same land year after year. This can lead to soil depletion, reduced fertility , and increased pest and disease pressure , making it a less sustainable farming practice.
جب ایک فرم کو پیداوار بڑھانے پر پیمانے کی معیشت حاصل ہو تو اس کا طویل المدتی اوسط لاگت کا منحنی کیسا ہوگا؟
A. Slope down wards to the right
B. Remain above its marginal cost curve
C. None of these
D. Slope upwards to the right
Check answer and explanation
Answer: Slope down wards to the right
Explanation Economies of scale occur when a firm increases production and its cost per unit falls. In the long run , as output increases, efficiency improves and average cost decreases. This causes the long-run average cost (LRAC) curve to slope downward. It reflects lower per-unit cost at higher levels of production. Therefore, the curve slopes downwards to the right. Last verified on 23-04-2026
پاکستان میں غیر ملکی براہ راست سرمایہ کاری کا سب سے بڑا حصہ کس شعبے کو حاصل ہوتا ہے؟
A. Electronics
B. Oil and Gas and Power Sector
C. None of these
D. Chemical and Pharmaceuticals
Check answer and explanation
Answer: Oil and Gas and Power Sector
Explanation Foreign Direct Investment (FDI) in Pakistan is mainly concentrated in energy-related industries. The oil, gas, and power sector attracts the largest share of total FDI. This is due to high demand for energy and large infrastructure projects . It plays a key role in economic development and industrial growth . Last verified on 23-04-2026
A. Poor nations will grow faster than rich nations
B. The rich will get richer and the poor will get poorer
C. The rich will get poorer and the poor will get richer
D. Rich nations will grow faster than poor nations
Check answer and explanation
Answer: Poor nations will grow faster than rich nations
Explanation The Solow Growth Model is a neoclassical growth theory. It predicts convergence of income levels across countries. Poor countries tend to grow faster due to lower capital stock . Rich countries grow slower due to diminishing returns to capital . Last verified on 24-04-2026
D. Income derived from taxes by the central government
Check answer and explanation
Answer: All wealth of a nation
Explanation "All wealth of a nation" relates to its total assets minus liabilities (net wealth) or its productive capacity (Gross Domestic Product/National Income) This can refer to the country's total physical and financial assets minus its debts (national net wealth) o r, in classical terms (Adam Smith's Wealth of Nations), the annual flow of goods and services produced (Gross National Product/Income).
یونیورسٹی کے طلبہ کی طرف سے ادا کی جانے والی ٹیوشن فیس کیا ہے؟
A. None of these
B. Progressive tax
C. Regressive tax
D. User charge
Check answer and explanation
Answer: User charge
Explanation Tuition fee is the payment made by students for receiving education services . It is charged directly in exchange for a specific service. Such payments are called user charges in public finance . It is not a tax because it is linked to direct service consumption . So, tuition fee is a user charge . Last verified on 23-04-2026
مندرجہ ذیل میں سے کون سا درست معاہدہ کے لوازمات میں شامل نہیں ہے؟
A. Free consent
B. Lawful consideration
C. None of these
D. More than two parties
Check answer and explanation
Answer: More than two parties
Explanation A valid contract requires at least two parties, but it does not require more than two parties. Free consent, lawful consideration, and consensus ad idem (mutual agreement) are essential elements of a valid contract.
تقابلی برتری کے نظریے کے مطابق بین الاقوامی تجارت سے فائدہ کب حاصل ہوتا ہے؟
A. Only if both comparative and absolute advantages are present in both countries
B. None of these
C. If countries specialize in the production of goods in which they are relatively more efficient
D. If opportunity costs are the same in the countries involved
Check answer and explanation
Answer: If countries specialize in the production of goods in which they are relatively more efficient
Explanation The doctrine of comparative advantage explains gains from international trade. Proposed by David Ricardo , it states that countries should specialize in goods where they are relatively more efficient . Even if one country is better in all goods, trade is still beneficial. Specialization based on lower opportunity cost increases overall gains. Last verified on 23-04-2026
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