Balance of Payments and Economic Concepts

The lecture introduces the concepts of trade and commerce, explaining the roles of imports and exports in a country's economy. It discusses how a country's wealth is similar to a family's finances, emphasizing the importance of exporting more than importing to maintain a positive balance of payments. The lecture also covers the concept of balance of payments, distinguishing between positive and negative balances. Additionally, it highlights the significance of remittances from citizens working abroad, particularly in Pakistan, as a source of national income.

What is the term used for buying products from other countries?

• Trade

• Imports

• Exports

• Commerce

How is a country's wealth similar to a family's finances?

• Both depend on imports

• Both rely on exports

• Both are managed by the government

• Both involve earning and spending money

What happens if a country exports more than it imports?

• It has to borrow money

• It has extra money to spend

• It faces a negative balance of payments

• It reduces its wealth

Which type of export is considered most valuable?

• Agricultural products

• Manufactured products

• Natural resources

• Raw materials

What is the balance of payments?

• The total value of a country's imports

• The amount of money borrowed from the World Bank

• The total value of a country's exports

• The difference between imports and exports

What indicates a positive balance of payments?

• Exports are greater than imports

• Imports and exports are equal

• The country has no debt

• Imports are greater than exports

What is a negative balance of payments?

• When a country exports more than it imports

• When a country has no imports

• When a country imports more than it exports

• When a country has no exports

Why do many Pakistanis work abroad?

• Higher wages and salaries

• Better working conditions

• To avoid taxes

• More job opportunities

What do workers abroad do with most of their earnings?

• Invest in local businesses

• Spend it on personal needs

• Send it back to their families

• Save it for retirement

What is one benefit of remittances for Pakistan?

• Additional source of income

• Increased imports

• Higher taxes

• Reduced exports