1. Which of the following is a major economic challenge faced by Pakistan?
a) Surplus budget
b) High literacy rate
c) Unemployment
d) Stable inflation rate
Answer: c) Unemployment
2. What is the primary reason behind Pakistan’s trade deficit?
a) Exports exceeding imports
b) Low production of goods and services
c) Increased foreign investment
d) Strong domestic demand
Answer: b) Low production of goods and services
3. Which sector in Pakistan is most affected by energy crises?
a) Agriculture
b) Manufacturing
c) Information technology
d) Tourism
Answer: b) Manufacturing
4. What role does corruption play in exacerbating economic challenges in Pakistan?
a) It promotes economic growth
b) It ensures equitable distribution of resources
c) It undermines public trust and diverts funds from development projects
d) It reduces inflation rates
Answer: c) It undermines public trust and diverts funds from development projects
5. Which international organization has provided financial assistance to Pakistan to address its economic challenges?
a) World Bank
b) International Monetary Fund (IMF)
c) Asian Development Bank (ADB)
d) All of the above
Answer: d) All of the above
6. What impact does political instability have on Pakistan’s economy?
a) Boosts investor confidence
b) Promotes foreign direct investment
c) Leads to capital flight and hampers economic growth
d) Increases government revenue
Answer: c) Leads to capital flight and hampers economic growth
7. Which of the following is NOT a factor contributing to poverty in Pakistan?
a) Limited access to education and healthcare
b) Rapid population growth
c) Adequate job opportunities
d) Unequal distribution of wealth
Answer: c) Adequate job opportunities
8. What is the impact of inflation on the purchasing power of the average Pakistani citizen?
a) Increases purchasing power
b) Decreases purchasing power
c) No effect on purchasing power
d) Stabilizes purchasing power
Answer: b) Decreases purchasing power
9. Which economic policy aims to reduce government spending to control inflation and boost economic stability?
a) Expansionary fiscal policy
b) Contractionary fiscal policy
c) Loose monetary policy
d) Tight monetary policy
Answer: b) Contractionary fiscal policy
10. How does Pakistan’s reliance on remittances contribute to its economic challenges?
a) It reduces poverty rates
b) It stabilizes the economy
c) It exposes the economy to external shocks
d) It promotes domestic investment
Answer: c) It exposes the economy to external shocks
11. Which of the following sectors in Pakistan is the largest contributor to GDP?
a) Agriculture
b) Services
c) Manufacturing
d) Information technology
Answer: a) Agriculture
12. What role does infrastructure development play in addressing economic challenges in Pakistan?
a) Hinders economic growth
b) Enhances productivity and attracts investment
c) Increases inflation rates
d) None of the above
Answer: b) Enhances productivity and attracts investment
13. What impact do trade deficits have on Pakistan’s foreign exchange reserves?
a) Increases reserves
b) Decreases reserves
c) No effect on reserves
d) Stabilizes reserves
Answer: b) Decreases reserves
14. What is the primary source of revenue for the Pakistani government?
a) Agricultural tax
b) Corporate tax
c) Value-added tax (VAT)
d) Income tax
Answer: d) Income tax
15. What measures can Pakistan take to address its energy crisis and improve its economic outlook?
a) Increase reliance on fossil fuels
b) Invest in renewable energy sources
c) Privatize energy sector
d) Decrease subsidies on electricity
Answer: b) Invest in renewable energy sources
16. How does brain drain affect Pakistan’s economy?
a) Boosts innovation and entrepreneurship
b) Reduces unemployment rates
c) Leads to loss of skilled workforce and hampers economic growth
d) None of the above
Answer: c) Leads to loss of skilled workforce and hampers economic growth
17. Which economic indicator reflects the overall health of an economy?
a) Gross Domestic Product (GDP)
b) Consumer Price Index (CPI)
c) Balance of Trade
d) National Savings
Answer: a) Gross Domestic Product (GDP)
18. What role do international trade agreements play in Pakistan’s economic challenges?
a) Promote exports and economic growth
b) Increase trade barriers
c) Stifle competition
d) None of the above
Answer: a) Promote exports and economic growth
19. How does the informal economy contribute to Pakistan’s economic challenges?
a) Provides employment opportunities
b) Increases tax revenue
c) Hinders economic growth and formalization
d) Reduces poverty rates
Answer: c) Hinders economic growth and formalization
20. What impact does inflation have on foreign investment in Pakistan?
a) Encourages foreign investment
b) Discourages foreign investment
c) No effect on foreign investment
d) Stabilizes foreign investment
Answer: b) Discourages foreign investment
21. What role does the lack of technological innovation play in Pakistan’s economic challenges?
a) Enhances productivity
b) Promotes economic growth
c) Hinders competitiveness and limits growth potential
d) Encourages foreign investment
Answer: c) Hinders competitiveness and limits growth potential
22. How does public debt affect Pakistan’s economic challenges?
a) Reduces inflation
b) Stabilizes exchange rates
c) Increases fiscal deficit and debt servicing burden
d) Promotes economic stability
Answer: c) Increases fiscal deficit and debt servicing burden
23. What impact do natural disasters have on Pakistan’s economy?
a) Stimulate economic growth
b) Enhance agricultural productivity
c) Disrupt economic activities and infrastructure
d) Increase foreign investment
Answer: c) Disrupt economic activities and infrastructure
24. What role does foreign aid play in addressing Pakistan’s economic challenges?
a) Reduces poverty rates
b) Enhances infrastructure development
c) Provides temporary relief but may lead to dependency
d) Increases trade deficit
Answer: c) Provides temporary relief but may lead to dependency
25. How does political instability affect investor confidence in Pakistan?
a) Boosts investor confidence
b) Encourages foreign investment
c) Deters investment and hampers economic growth
d) Reduces inflation rates
Answer: c) Deters investment and hampers economic growth
26. What measures can Pakistan take to address its high unemployment rates?
a) Increase import tariffs
b) Promote vocational training and entrepreneurship
c) Reduce government spending
d) Privatize public sector enterprises
Answer: b) Promote vocational training and entrepreneurship
27. How does demographic transition impact Pakistan’s economic challenges?
a) Increases productivity
b) Reduces dependency ratio
c) Creates pressure on resources and social services
d) Encourages sustainable development
Answer: c) Creates pressure on resources and social services
28. Which sector in Pakistan is most susceptible to the effects of climate change?
a) Agriculture
b) Manufacturing
c) Services
d) Information technology
Answer: a) Agriculture
29. What impact do trade imbalances have on Pakistan’s foreign exchange reserves?
a) Increases reserves
b) Decreases reserves
c) Stabilizes reserves
d) No effect on reserves
Answer: b) Decreases reserves
30. What measures can Pakistan take to enhance its global competitiveness?
a) Increase protectionist policies
b) Invest in education and research and development
c) Decrease reliance on international trade
d) Nationalize key industries
Answer: b) Invest in education and research and development