Free Economy of Pakistan MCQs with Answers

• A. Yujiro Hayami
• B. Raanan Weitz
• C. Hans Singer
• D. Tim Dyson

Explanation: Yujiro Hayami argued that plantations have no necessary scale advantage for crops such as cocoa and coconuts when processing and marketing…

• A. Such a farm is the most advanced
• B. Such a farm usually emphasizes
• C. Such a farm is labor intensive
• D. Such a farm uses advanced technology and takes advantage of economies of scale.

Explanation: Specialized farms generally use advanced technology, emphasize a limited range of products and exploit economies of scale, but they are…

• A. introducing the reform package at once to ensure that it became too late and costly to reverse the reforms
• B. agricultural reform rather than industrial reforms to overcome food insecurity
• C. the creation of a small-scale private sector ans small independent banks
• D. attempts to gradually remake institutions

Explanation: Popov criticized shock therapy for its emphasis on implementing many reforms rapidly and simultaneously, making the transition disruptive…

• A. food, clothing and housing
• B. health, education and quality housing
• C. adequate nutrition, primary education health sanitation water supply and housing
• D. longevity and living standards

Explanation: The basic-needs approach covers adequate food or nutrition together with primary education, health care, sanitation, safe water and…

• A. Brl
• B. Bel
• C. Bbl
• D. Obl

Explanation: Bbl is the standard abbreviation for barrel or barrels in the oil industry; the second “b” historically represents the plural or the word…

• A. Micro Finance Bank
• B. Moderba Bank
• C. SME- Bank
• D. First MINI Bank

Explanation: A microfinance bank provides small loans and other financial services to very small enterprises and low-income borrowers who may not…

• A. 1st September
• B. 1st January
• C. 1st April
• D. 1st July

Explanation: Pakistan’s financial year runs from 1 July to 30 June of the following year, unlike the calendar year that begins on 1 January.

• A. State Bank
• B. National Bank
• C. Both of them
• D. None of them

Explanation: The State Bank of Pakistan is the country's central bank, responsible for monetary policy, currency issuance and banking regulation.

• A. State Bank
• B. National Bank
• C. Both of them
• D. None of them

Explanation: The State Bank of Pakistan is the country's central bank, responsible for monetary policy, currency issuance and regulation of the banking…

• A. Business Crop
• B. Cash crop
• C. Money Crop
• D. Earning Crop

Explanation: A cash crop is grown mainly for sale and commercial income rather than for the farmer's own consumption.

• A. Hinterland
• B. Country land
• C. Dependent land
• D. Parasite land

Explanation: A hinterland is the inland area economically linked to a town, city, or port and served by it.

• A. Total dept
• B. Debt burden
• C. National liabilities
• D. External debt

Explanation: External debt is the total amount a country owes to foreign governments, institutions, and other creditors outside its borders.

• A. economics problems are solved by the government and market
• B. economic decisions are made by the private sector and free market
• C. economic allocation is achieved by the invisible hand
• D. economics s is solved by government departments

Explanation: A mixed economy combines market mechanisms with government intervention in production, distribution, and resource allocation.

• A. Final goods sold to households and firms
• B. Output at each stage minus intermediate inputs
• C. Intermediate goods purchased by producers
• D. All goods traded in domestic markets

Explanation: Value added equals the value of an industry's output minus the cost of intermediate inputs.

• A. Increase commercial bank reserves
• B. Reduce liquidity in the banking system
• C. Increase exports through cheaper credit
• D. Raise government tax collections

Explanation: Open-market sales transfer funds from buyers to the central bank and reduce commercial bank reserves.

• A. Public debt is large relative to national output
• B. The government has achieved a fiscal surplus
• C. Private investment exceeds public investment
• D. Exports are greater than imports

Explanation: The debt-to-GDP ratio compares the accumulated public debt with the economy's annual output.

• A. Improve because exports buy more imports
• B. Worsen because imports become cheaper
• C. Remain unchanged because quantities are fixed
• D. Disappear because trade is recorded in dollars

Explanation: Terms of trade are commonly measured as the ratio of export prices to import prices.

• A. Covered by appropriate financial inflows
• B. Matched by lower domestic production
• C. Eliminated by banning all imports
• D. Converted into a trade surplus automatically

Explanation: External deficits can be financed temporarily through borrowing, foreign investment or other financial-account inflows.

• A. A worker temporarily searching between two jobs
• B. A textile worker displaced by obsolete machinery
• C. A worker unable to find jobs during a prolonged recession
• D. A seasonal farm worker unemployed after harvest

Explanation: Frictional unemployment arises while people move between jobs or search for a suitable first job.

• A. Health, education and living standards
• B. Exports, imports and exchange rates
• C. Interest rates, taxes and public debt
• D. Wages, profits and dividend payments

Explanation: Multidimensional poverty measures several forms of deprivation, including health, education and household living conditions.