Introduction to Economics

1. Three basic economic problems:

a. what, which and how much

b. what, which, why

c. what, how, and for whom

d. why , where and when

Correct Option: c

2. Economic laws of:

a. Define

b. Approximate

c. Exact

d. Brief

Correct Option: b


3. Population census was held in pakistan:

a. 1994

b. 2002

c. 2006

d. 1998

Correct Option: d


4. The nature of unemployment due to mechanizatioon of agriculture is:

a. Structural

b. Seasonal

c. Industrial

d. Permanent

Correct Option: a


5. Pakistan having a:

a. Capitalistic economy

b. Socialistic economy

c. Islamic economy

d. Mixed economy

Correct Option: c


6. Unemployment rate in pakistan is:

a. between 5% and 20%

b. less than 5%

c. between 20%and 30%

d. more than 30%

Correct Option: a


7. State bank of pakistan is run by:

a. Board of governers

b. Board of manager

c. Board of bankers

d. Board of director

Correct Option: d


8. Pakistan imports these goods:

a. Machinery, petroleum, fish

b. Tea, fish, fertilizer

c. Machinery, oil, fertilizer

d. Machinery, tea, fish

Correct Option: c


9. Pakistan’s shares in the world for cotton textile is:

a. Less than 3%

b. 0.1

c. 0.2

d. 0.3

Correct Option: a


10. Pakistan is not a member of:

a. ECO

b. World bank


d. IMF

Correct Option: c


11. All are advantage of foreign trade EXCEPT:

a. Nation compete

b. cheaper goods

c. both A and B

d. People get foreign exchange

Correct Option: d


12. We can increase rate of economic growth in pakistan if we increase:

a. Investment

b. Taxes

c. Imports

d. Population

Correct Option: a


13. The largest sector of pakistan economy is:

a. Industry

b. Trade

c. Agriculture

d. Transport

Correct Option: c


14. Expenditure on health as percentage of GDP is:

a. More than 12%

b. Less than 4%

c. More than 4%

d. More than 8%

Correct Option: b


15. Public spend on health is:

a. more than 3%

b. Less than 1%

c. More than 1%

d. more than 2%

Correct Option: b

16. GNP includes:

a. Gifts and donation

b. A broker’s commission

c. A loan from a bank

d. A loan from one’s parent

Correct Option: b


17. The govt. spends on education percentage of GDP:

a. 6

b. 7

c. 8

d. 5

Correct Option: d


18. Policy of protection in trade:

a. protacts local producers

b. Facilities trade

c. protects foreign producers

d. protects exports

Correct Option: a


19. Theory of comparative advantage was presented by:

a. Adam smith

b. Hicks

c. Arshad

d. Ricardo

Correct Option: d


20. The current policy rate by state bank of pakistan is _______% per annum:

a. 7.5

b. 8

c. 8.5

d. 7

Correct Option: d


21. The contribution of industry in our GDP is:

a. 0.19

b. 0.09

c. 0.29

d. 0.39

Correct Option: a


22. Forest cover in pakistan is:

a. 0.04

b. 0.02

c. 0.06

d. 0.08

Correct Option: a


23. there are stock exchanges in pakistan:

a. 3

b. 2

c. 4

d. 5

Correct Option: a


24. The major difference between perfect competition and monopolistic cometition is:

a. Free exist and entry

b. Differentiated

c. Number of firms

d. Rate of profit

Correct Option: b


25. The transformation of resoources into economic goods and series is called:

a. increasing returns

b. Production

c. Technical efficiency

d. input

Correct Option: b


26. Geographical mobility is not possible for:

a. Capital

b. Wealth

c. Land

d. Labour

Correct Option: c


27. For good production of goods wwe need factors:

a. two

b. unlimited

c. four

d. few

Correct Option: c


28. Contribution of industrial sector in pakistan’s GDP is:

a. 0.18

b. 0.28

c. 0.38

d. 0.48

Correct Option: a


29. The largest share in pakistan’s GNP is that of:

a. Services

b. Industry

c. Banking

d. Agriculture

Correct Option: d


30. Rich countries have deficit in their balance of payments:

a. Never

b. Alternative years

c. Always

d. Sometimes

Correct Option: d


31. Pakistan’s export mainly consist of products:

a. Minerals

b. Services

c. Semi-manufactured

d. Machinery

Correct Option: c

  1. It is a transfer payments:
  2. College fee
  3. Salary
  4. Pension
  5. Bus fare

Correct Option: c


  1. The largest part of national income goes to:
  2. Saving
  3. Transfer payment
  4. Consumption
  5. Investments

Correct Option: c


  1. Union leaders are in a better position to bargain for higher wages if demand for labour:
  2. Inelastic
  3. Elastic
  4. very large
  5. permanent

Correct Option: a


  1. Every country should have population:
  2. Fast growing
  3. Optimum
  4. Minimum
  5. Constant

Correct Option: b


  1. standard of living of workers depends upon their:
  2. Govt.policy
  3. Real wagas
  4. Nominal wagaes
  5. Average product

Correct Option: b


  1. Unemployment takes place because of:
  2. Higher education
  3. High population growth rate
  4. High demand for labour
  5. More exports

Correct Option: b


  1. Productivity of labour is measured by:
  2. Production per day
  3. Total working hours
  4. Production per hour
  5. Measuring GDP

Correct Option: c


  1. All labour is:
  2. Intelligent
  3. Heterogeneous
  4. Homogeneous
  5. Lazy

Correct Option: b


  1. A crucial role in development was assigned to:
  2. Government
  3. Profits
  4. Specialisation
  5. Tchnological changes

Correct Option: b


  1. Perspective planning refers to:
  2. Annual planning
  3. Structural planning
  4. Long-term planning
  5. Indicative planning

Correct Option: c


  1. Pakistan’s per capita income at constant prices in rupees is:
  2. Rs.92,000
  3. Rs.9,000
  4. Rs.32,000
  5. Rs.62,000

Correct Option: c


  1. Literacy rate in pakistan is:
  2. 0.57
  3. 0.37
  4. 0.47
  5. 0.67

Correct Option: a


  1. Pakistan is the _________ exporter of rice in the world:
  2. 2nd lrgest
  3. 4th largest
  4. 5th largest
  5. 3rd largest

Correct Option: d


  1. Manufacturing and industry now account for _____ of the income:
  2. 0.25
  3. 0.35
  4. 0.45
  5. 0.55

Correct Option: a


  1. The revenue generated is only15% GDP at best, and in the worst days it is:
  2. 13 to 14%
  3. 14 to 15%
  4. 15 to 16%
  5. 12 to 13%

Correct Option: d


  1. Ecxchange rate for currencies is determined by supply and demand in sysytem of:
  2. Govt.regulated
  3. Flexible
  4. Fixed exchange rate
  5. Constant

Correct Option: b


  1. If GNP of pakistan rises, it will encourage:
  2. Both
  3. Exports
  4. Imports
  5. None of these

Correct Option: a


  1. It helps countries to meet deficit in balance of payment:
  2. World bank
  3. UNO
  4. IMF
  5. WTO

Correct Option: c


  1. Pakistan exports are part of our GDP:
  2. 0.15
  3. 0.05
  4. 0.25
  5. 0.35

Correct Option: a