Quiz on Economic Concepts Related to Pakistan

What is the primary purpose of foreign economic assistance?

• To promote local industries

• To strengthen economies of developing countries

• To reduce government spending

• To increase national debt

Which of the following is a disadvantage of foreign aid?

• Boost in employment opportunities

• Improvement in infrastructure

• Increase in foreign aid's debt servicing

• Increase in foreign investment

What is inflation primarily characterized by?

• A decrease in prices

• Increase in unemployment

• Stability in the economy

• A general rise in prices

Which of the following is a cause of inflation in Pakistan?

• Decrease in population

• Decrease in money supply

• Increase in wages and salaries

• Reduction in foreign remittances

What is one method of controlling inflation?

• Encouraging imports

• Increasing government spending

• Raising the bank rate

• Decreasing taxes

What is a major reason for the adverse balance of payments in Pakistan?

• Strong currency

• Low import costs

• Narrow export base

• High export growth

What does the balance of trade measure?

• Government revenue

• Difference between exports and imports of goods

• Foreign investment levels

• Total economic transactions

Which of the following is a source of capital formation?

• Political instability

• High inflation rates

• Foreign economic assistance

• Increased consumption

What is one of the main roles of the State Bank of Pakistan?

• To control the stock market

• To manage foreign exchange reserves

• To directly invest in industries

• To provide loans to individuals

Which of the following is a source of government revenue?

• Debt financing

• Foreign aid

• Tax revenue

• Public expenditure