1. Which economic problem refers to a continuous rise in the general price level?
(A) Deflation
(B) Recession
(C) Inflation
(D) Depression
2. One of the major causes of inflation in Pakistan is?
(A) High exports
(B) Low population
(C) Increase in cost of production
(D) High savings
3. Unemployment means a situation where people are?
(A) Working part-time
(B) Retired
(C) Willing to work but unable to find jobs
(D) Self-employed
4. Which sector employs the largest portion of Pakistan’s labor force?
(A) Industry
(B) Services
(C) Trade
(D) Agriculture
5. Trade deficit occurs when a country’s imports are?
(A) Equal to exports
(B) Less than exports
(C) More than exports
(D) Zero
6. Pakistan mainly depends on which sector for export earnings?
(A) Textile industry
(B) Agriculture
(C) Mining
(D) Tourism
7. Which economic challenge refers to shortage of electricity and gas?
(A) Inflation
(B) Energy crisis
(C) Fiscal deficit
(D) Poverty
8. Poverty means lack of access to basic needs such as?
(A) Luxury goods
(B) Technology
(C) Entertainment
(D) Food, health, and shelter
9. Which factor increases poverty in Pakistan?
(A) High literacy
(B) Unemployment
(C) Industrial growth
(D) Foreign investment
10. Budget deficit occurs when government expenditures are?
(A) Less than revenue
(B) Equal to revenue
(C) More than revenue
(D) Zero
11. Which institution provides loans to Pakistan to stabilize its economy?
(A) IMF
(B) World Health Organization
(C) UNESCO
(D) SAARC
12. Public debt refers to loans taken by the government from?
(A) Internal and external sources
(B) Foreign countries only
(C) Citizens only
(D) Private companies only
13. Which economic issue is caused by rapid population growth?
(A) Increased savings
(B) Balanced development
(C) Higher exports
(D) Pressure on resources
14. Low literacy rate affects the economy by reducing?
(A) Population
(B) Natural resources
(C) Skilled labor
(D) Inflation
15. Which sector’s slow growth is a major challenge for Pakistan’s economy?
(A) Agriculture
(B) Industrial sector
(C) Defense sector
(D) Sports sector
16. Which factor discourages foreign investment in Pakistan?
(A) Political instability
(B) Skilled labor
(C) Natural resources
(D) Large market
17. Balance of payments problem arises due to?
(A) Excess exports
(B) High imports and low exports
(C) Trade surplus
(D) High savings
18. Which economic challenge is linked with unequal distribution of wealth?
(A) Income inequality
(B) Inflation
(C) Unemployment
(D) Energy crisis
19. Corruption negatively affects the economy by?
(A) Misuse of public resources
(B) Promoting efficiency
(C) Increasing transparency
(D) Increasing exports
20. Which sector suffers most due to energy shortages?
(A) Agriculture
(B) Education
(C) Industry
(D) Health
21. Which problem reduces government revenue collection?
(A) Effective taxation
(B) High exports
(C) Tax evasion
(D) Foreign aid
22. Pakistan’s economy is often described as?
(A) Fully developed
(B) Underdeveloped
(C) Developing
(D) Industrialized
23. Which factor helps reduce unemployment?
(A) Population growth
(B) Inflation
(C) Industrialization
(D) Energy shortage
24. Which economic issue leads to decrease in purchasing power of people?
(A) Deflation
(B) Inflation
(C) Savings
(D) Investment
25. Which challenge is related to inefficient use of natural resources?
(A) Poor governance
(B) Energy crisis
(C) Resource mismanagement
(D) Urbanization
26. Which economic problem is caused by heavy reliance on loans?
(A) Debt burden
(B) Economic independence
(C) Trade surplus
(D) High savings
27. Which factor increases cost of doing business in Pakistan?
(A) Political stability
(B) Low inflation
(C) Skilled workforce
(D) Energy shortage
28. Which economic challenge is directly linked with population explosion?
(A) Trade surplus
(B) Export growth
(C) Unemployment
(D) Industrial expansion
29. Which policy helps control inflation?
(A) Tight monetary policy
(B) Increasing money supply
(C) Population growth
(D) Subsidies only
30. Sustainable economic growth in Pakistan mainly depends on?
(A) Human resource development
(B) Natural disasters
(C) Foreign loans
(D) Imports