Economics is one of the most important and conceptual subjects tested in FPSC, PPSC, CSS, and other competitive exams.
This guide compiles the most important Economics MCQs based on past papers and core theories – perfect for your 2025 preparation.
Key Theories and Concepts
Q1. Who is known as the Father of Economics?
Ans: Adam Smith
Q2. The book “Wealth of Nations” was written by?
Ans: Adam Smith
Q3. Law of Demand states that, other things equal?
Ans: When price rises, demand falls
Q4. GDP stands for?
Ans: Gross Domestic Product
Q5. Inflation refers to?
Ans: Continuous increase in general price level
Microeconomics MCQs
Q6. Marginal Utility theory was presented by?
Ans: Alfred Marshall
Q7. Elasticity of demand measures?
Ans: Responsiveness of demand to price change
Q8. Perfect competition means?
Ans: Many buyers and sellers with identical products
Q9. The law of diminishing returns applies to?
Ans: Short-run production
Q10. Opportunity cost means?
Ans: The next best alternative foregone
Macroeconomics MCQs
Q11. Fiscal policy deals with?
Ans: Government revenue and expenditure
Q12. Monetary policy is controlled by?
Ans: Central Bank
Q13. Stagflation means?
Ans: High inflation + low growth
Q14. Balance of Payments records?
Ans: All international transactions
Q15. The unemployment rate measures?
Ans: Percentage of jobless labor force
International Economics & Trade
Q16. WTO stands for?
Ans: World Trade Organization
Q17. Exchange rate means?
Ans: Price of one currency in terms of another
Q18. Imports exceeding exports cause?
Ans: Trade deficit
Q19. Comparative advantage theory was given by?
Ans: David Ricardo
Q20. Devaluation of currency makes exports?
Ans: Cheaper
Study Tips for Economics MCQs
- Understand definitions and real-life examples
- Study past 10 years FPSC/PPSC MCQs
- Revise formulas (GDP, CPI, Elasticity, Multiplier)
- Stay updated with Pakistan’s Economic Survey 2024–25
- Practice quizzes on AZMCQs – Economics Section
Final Words
Economics can be one of the highest-scoring subjects in FPSC and PPSC exams – if you understand its core logic and practice MCQs regularly.
Use AZMCQs to strengthen your knowledge through chapter-wise quizzes and past paper analysis.
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