Inflation and Poverty in Pakistan

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1. Inflation refers to?
(A) Rise in prices of goods and services over time
(B) Decrease in population
(C) Increase in exports
(D) Decrease in unemployment

2. A major cause of inflation in Pakistan is?
(A) Decrease in exports only
(B) Reduced population
(C) Excess foreign reserves
(D) Increase in money supply and demand exceeding supply

3. Food inflation affects Pakistan’s?
(A) Only industrial sector
(B) Urban and rural households’ purchasing power
(C) Only tourism sector
(D) Only government revenue

4. Poverty is defined as?
(A) Lack of education only
(B) Lack of basic necessities like food, shelter, and clothing
(C) Lack of electricity only
(D) Lack of tourism

5. Pakistan’s poverty is mainly concentrated in?
(A) Urban areas only
(B) Rural areas and underdeveloped regions
(C) Industrial zones only
(D) Coastal cities only

6. Inflation reduces?
(A) Purchasing power of money
(B) Population growth
(C) Industrial output automatically
(D) Tourism

7. Which sector is most affected by inflation in Pakistan?
(A) Industrial sector only
(B) High-income households
(C) Low-income households
(D) Tourism only

8. One cause of poverty in Pakistan is?
(A) High literacy rate
(B) Excess exports
(C) Unemployment and low wages
(D) Surplus energy

9. High inflation in Pakistan can lead to?
(A) Increased exports only
(B) Reduced savings and increased cost of living
(C) Population growth
(D) Reduced foreign investment only

10. Inflation in Pakistan is measured by?
(A) GDP only
(B) Consumer Price Index (CPI)
(C) Population growth
(D) Literacy rate

11. Poverty alleviation programs in Pakistan include?
(A) Tourism promotion only
(B) Military expansion
(C) Export subsidies only
(D) Benazir Income Support Program (BISP)

12. Inflation can be caused by?
(A) Reduced industrial growth only
(B) Increase in import prices and devaluation of currency
(C) Reduced population
(D) High literacy only

13. Which group suffers most during high inflation in Pakistan?
(A) Tourists only
(B) Government officials only
(C) Exporters only
(D) Poor and fixed-income groups

14. One solution to reduce inflation is?
(A) Reducing exports only
(B) Tight monetary policy and controlling money supply
(C) Limiting industrial growth
(D) Reducing population

15. Poverty in Pakistan is linked with?
(A) High literacy only
(B) High energy production only
(C) Surplus exports only
(D) Low education, unemployment, and lack of social services

16. Inflation increases the cost of?
(A) Only exports
(B) Only military equipment
(C) Food, fuel, and basic commodities
(D) Tourism only

17. Government can reduce poverty by?
(A) Limiting exports
(B) Providing education, health services, and income support programs
(C) Increasing inflation
(D) Reducing industrial production

18. Demand-pull inflation occurs when?
(A) Supply exceeds demand
(B) Demand exceeds supply of goods and services
(C) Exports increase only
(D) Population decreases

19. Cost-push inflation occurs due to?
(A) Increased population only
(B) Reduced imports
(C) Rising production costs like wages and fuel
(D) High literacy only

20. Poverty line in Pakistan is defined as?
(A) Maximum income earned
(B) Minimum income required to meet basic needs
(C) Total population
(D) Industrial production

21. Inflation affects savings because?
(A) Industrial production increases
(B) Population grows
(C) Export increases
(D) Value of money decreases over time

22. Pakistan’s government uses which policy to control inflation?
(A) Agricultural policies only
(B) Only military policies
(C) Only tourism policies
(D) Monetary and fiscal policies

23. Structural causes of poverty in Pakistan include?
(A) Surplus energy only
(B) Inequality, lack of access to education and healthcare
(C) High literacy only
(D) High exports only

24. Hyperinflation is?
(A) Zero inflation
(B) Low inflation
(C) Extremely high and accelerating inflation
(D) Negative inflation

25. Poverty reduction in Pakistan requires?
(A) Sustainable economic growth and social safety nets
(B) Only increased exports
(C) Only increased imports
(D) Military spending

26. Food price inflation affects which segment most?
(A) Exporters only
(B) Industrial sector only
(C) Government only
(D) Poor households

27. Inflation and poverty are linked because?
(A) Inflation benefits all
(B) Rising prices increase exports only
(C) Rising prices reduce purchasing power of poor people
(D) Poverty reduces exports automatically

28. One reason for rural poverty in Pakistan is?
(A) Excess energy
(B) High industrial growth
(C) Landlessness and low agricultural productivity
(D) Surplus exports

29. Social protection programs help reduce poverty by?
(A) Providing cash transfers and subsidies to the poor
(B) Increasing inflation
(C) Reducing exports
(D) Reducing literacy

30. Controlling inflation and reducing poverty requires?
(A) Reducing population only
(B) Sound economic policies, investment in human capital, and social welfare programs
(C) Limiting exports only
(D) Reducing industrial production only