All Free Economics MCQs with Answers

• A. corporately owned businesses to individuals
• B. publicly held stock to private individuals.
• C. government businesses to the private sector
• D. privately owned businesses to the government sector

Explanation: Privatization moves ownership or control of state-owned enterprises from the government to private owners or the private sector.

• A. Labor is often underemployed, having a low alternative cost
• B. It is cheaper to hire labor in LDC because its productivity is relatively higher than in DCs
• C. Adapting existing Western technology to LDC conditions requires little creativity
• D. Labor is usually considered the scarce factor

Explanation: Labour in less developed countries is often underemployed, so its opportunity cost of employment can be low.

• A. inadequate government bureaucracy
• B. small size of infrastructure
• C. too few innovative entrepreneurs
• D. unsuitable technology
• E. All of the above are correct

Explanation: Absorptive capacity depends on institutions, infrastructure, entrepreneurial and technical skills, and suitable technology.

• A. average annual investment made in production of exported commodities
• B. proportion of the primary export commodity in total exports
• C. ratio of four leading commodities to total merchandise exports
• D. total annual investment made in production of exported commodities

Explanation: An export commodity concentration ratio commonly measures the share of the leading export commodities in total merchandise exports; the…

• A. rural politicians
• B. rural cultivators
• C. rural industrialist
• D. rural, religious group

Explanation: Peasants are small-scale rural cultivators, usually engaged in farming and often working their own or rented land.

• A. 3.1 percent
• B. 3.0 percent
• C. 18.6 percent
• D. 18.0 percent

Explanation: The growth rate is calculated as (18,635 − 18,073) ÷ 18,073 × 100, which is about 3.1 percent.

• A. Keeping balanced budget, a price target
• B. slow economic growth under colonial capitalism
• C. minimizing public spending in the rural areas
• D. western countries, nation-state ideology

Explanation: Many less-developed countries adopted state planning in response to weak growth, exploitation, and structural dependence associated with…

• A. are workers who are compelled to work short hours
• B. result from an inadequate use of workers capacities
• C. are part-time workers who voluntarily work short hours
• D. None of the above is correct

Explanation: Invisible underemployment occurs when workers are counted as employed but their labour is not fully used, so removing some workers would…

• A. persons 15 to 24 years old
• B. the educated
• C. residents of urban areas
• D. from the poorest 1/5 of the population

Explanation: Open unemployment in LDCs is commonly concentrated among young, educated and urban people who can afford to search for work.

• A. 19.8%
• B. 10.3%
• C. 9.2%
• D. 11.5%

Explanation: The reported increase in gross fixed capital formation, which measures spending on fixed productive assets, was 10.3 percent during…

• A. 16.5%
• B. 18.2%
• C. 19.7%
• D. 20.5%

Explanation: Industry was Pakistan's second-largest economic sector and contributed 18.2 percent of GDP in the stated period.

• A. December 29, 2002
• B. December 25, 2002
• C. January 25, 2003
• D. February 15, 2003

Explanation: Pakistan launched the Paksat-I communications satellite on January 25, 2003, following the launch of Badr-II in December 2001.

• A. 1971
• B. 1970
• C. 1972
• D. 1973

Explanation: Karachi Nuclear Power Plant (KANUPP), Pakistan’s first nuclear power plant, began commercial operation in 1972.

• A. cement
• B. Sugar
• C. Textile
• D. Paper

Explanation: Textiles are Pakistan’s largest industrial sector and a major source of exports, employment, and foreign exchange.

• A. Embroidery work
• B. irrigation work
• C. wood work
• D. agriculture

Explanation: Mianwali is associated with irrigation works, particularly because of its connection with the Indus River and major irrigation…

• A. Sialkot
• B. Chiniot
• C. Gujranwala
• D. Lahore

Explanation: Sialkot is internationally recognized for producing high-quality footballs, surgical instruments, and other sports goods.

• A. Cement
• B. Sugar
• C. Handicraft
• D. Textile

Explanation: Handicrafts are typically produced by households or small workshops using relatively simple tools, which makes them a cottage industry.

• A. Little England
• B. Little California
• C. Little Manchester
• D. Little Oxford

Explanation: Faisalabad is called “Little Manchester” because of its extensive textile and manufacturing industry.

• A. August 3, 2000
• B. September 15, 2001
• C. July 13, 2000
• D. August 15, 2000

Explanation: Pakistan Meteorological Department records commonly cite 3 August 2000 as the date of its successful artificial-rainfall experiment in…

• A. China
• B. Japan
• C. USA
• D. UK

Explanation: Heavy Mechanical Complex at Taxila was established with Chinese assistance, reflecting Pakistan-China cooperation in heavy engineering.