Inflation and Poverty in Pakistan 50 Score: 0 Attempted: 0/50 Subscribe 1. : What is a major cause of inflation in Pakistan? (A) Increased exports (B) Political stability (C) High fiscal deficit (D) Low population growth 2. : Which organization regularly measures inflation in Pakistan? (A) NADRA (B) FBR (C) Pakistan Bureau of Statistics (D) SECP 3. : Which index is used to measure inflation in Pakistan? (A) Human Development Index (B) Consumer Price Index (C) Corruption Perception Index (D) Ease of Doing Business Index 4. : Which of the following contributes significantly to poverty in Pakistan? (A) Industrialization (B) High literacy rate (C) Unemployment (D) Foreign investment 5. : What is the main impact of inflation on the poor? (A) Increases savings (B) Decreases purchasing power (C) Enhances quality of life (D) Improves employment 6. : Which program is aimed at poverty alleviation in Pakistan? (A) Ehsaas Program (B) Roshan Digital (C) Kamyab Overseas (D) Sehat Card 7. : Which sector is most affected by inflation in Pakistan? (A) Defense (B) Agriculture (C) Real Estate (D) Households 8. : Inflation reduces the value of which of the following? (A) Debts (B) Exports (C) Money (D) Natural resources 9. : What is one of the main sources of poverty in rural Pakistan? (A) Over-industrialization (B) Climate-resilient farming (C) Poor agricultural productivity (D) Urbanization 10. : What is a common short-term government response to inflation? (A) Increase foreign loans (B) Increase interest rates (C) Print more money (D) Reduce taxes 11. : Which international organization supports poverty reduction in Pakistan? (A) NATO (B) WTO (C) IMF (D) World Bank 12. : What is the role of SBP in controlling inflation? (A) Fix electricity prices (B) Set minimum wage (C) Manage monetary policy (D) Distribute subsidies 13. : How does currency devaluation affect inflation? (A) Controls inflation (B) Reduces foreign aid (C) Increases inflation (D) Has no effect 14. : What is the link between population growth and poverty in Pakistan? (A) No link (B) Negative correlation (C) Positive correlation (D) Indirect link 15. : Which sector employs the most poor in Pakistan? (A) IT (B) Agriculture (C) Telecom (D) Banking 16. : What does “core inflation” exclude? (A) Petrol prices (B) Food and energy prices (C) Import tariffs (D) Education costs 17. : What is a consequence of long-term inflation? (A) Currency appreciation (B) Higher real wages (C) Increased cost of living (D) Decrease in poverty 18. : What is a common cause of food inflation? (A) Increase in housing units (B) Excess food production (C) Supply chain disruptions (D) Decline in global oil prices 19. : Which of the following best defines poverty? (A) Having more than one job (B) Inability to afford basic needs (C) Working in rural areas (D) Earning foreign exchange 20. : Which of these helps reduce poverty? (A) Subsidy cuts (B) Currency devaluation (C) Job creation (D) Inflation increase 21. : Which economic policy is used to control inflation? (A) Fiscal policy (B) Agricultural policy (C) Trade policy (D) Population policy 22. : What is the current poverty line based on in Pakistan? (A) Access to luxury goods (B) Minimum monthly income (C) Education level (D) Foreign aid received 23. : What is a primary factor behind fuel price hikes in Pakistan? (A) Decrease in demand (B) Global crude oil prices (C) Increase in exports (D) High agricultural output 24. : What effect does inflation have on savings? (A) Encourages saving (B) Makes savings more valuable (C) Reduces real value of savings (D) No impact 25. : Which province in Pakistan has the highest poverty rate? (A) Punjab (B) Sindh (C) Balochistan (D) Khyber Pakhtunkhwa 26. : Which measure reflects the price change in wholesale goods? (A) GDP Deflator (B) Consumer Price Index (C) Wholesale Price Index (D) Retail Inflation Index 27. : Which sector is least impacted by inflation? (A) Fixed-income households (B) Small farmers (C) Exporters (D) Low-wage laborers 28. : Which is a key solution to long-term poverty alleviation? (A) Raising taxes (B) Providing subsidies (C) Investing in education (D) Free imports 29. : Who are most affected by food inflation in Pakistan? (A) Exporters (B) Upper class (C) Poor and fixed-income groups (D) Real estate investors 30. : What does “stagflation” mean? (A) Low inflation and high growth (B) High inflation with economic growth (C) High inflation and high unemployment (D) No inflation 31. : What is the aim of the Benazir Income Support Programme (BISP)? (A) Increase tax collection (B) Promote exports (C) Provide cash to low-income families (D) Reduce imports 32. : How does unemployment contribute to poverty? (A) Increases income (B) Reduces economic output (C) Raises education levels (D) Lowers population 33. : What causes “cost-push inflation”? (A) Increased demand (B) Government borrowing (C) Rising production costs (D) Currency appreciation 34. : A major global factor contributing to inflation in Pakistan is: (A) Natural disasters (B) Global supply chain disruptions (C) Local agriculture (D) Tax evasion 35. : Which income group is most impacted by inflation? (A) High-income group (B) Middle-income group (C) Low-income group (D) Corporate sector 36. : What type of poverty is caused by sudden job loss or illness? (A) Structural poverty (B) Relative poverty (C) Absolute poverty (D) Situational poverty 37. : Which government institution is responsible for monetary policy in Pakistan? (A) SECP (B) FBR (C) Ministry of Finance (D) State Bank of Pakistan 38. : What is the term for inflation caused by too much money in circulation? (A) Fiscal inflation (B) Demand-pull inflation (C) Cost-push inflation (D) Seasonal inflation 39. : Which one is a direct method to reduce poverty? (A) Subsidies for industries (B) Cash transfers (C) Import bans (D) Infrastructure loans 40. : Poverty in urban areas is often linked to: (A) Land ownership (B) Industrial growth (C) High cost of living (D) Fertility rates 41. : What is a long-term effect of persistent inflation? (A) Stabilized economy (B) Encouraged savings (C) Currency depreciation (D) Lower unemployment 42. : Which of the following can reduce inflation? (A) Reducing interest rates (B) Increasing money supply (C) Raising taxes (D) Reducing government spending 43. : What is a major impact of inflation on investments? (A) Increases real returns (B) Reduces real returns (C) Increases employment (D) Has no impact 44. : Which factor worsens rural poverty? (A) Urbanization (B) Crop failure (C) Internet access (D) Government jobs 45. : What is meant by “relative poverty”? (A) Being unemployed (B) Living without any shelter (C) Being poor compared to others in society (D) Living on foreign aid 46. : Which region of Pakistan faces seasonal poverty due to climate? (A) Northern areas (B) Urban Sindh (C) Balochistan (D) Southern Punjab 47. : What is a common tool used to provide food security to the poor? (A) Price subsidies (B) Import bans (C) Tax holidays (D) Inflation control 48. : Which government document outlines poverty reduction strategies? (A) Annual Education Census (B) Public Sector Development Program (C) Pakistan Economic Survey (D) National Trade Policy 49. : What is the effect of inflation on fixed-income earners? (A) Improves standard of living (B) Increases savings (C) Reduces real income (D) Increases credit access 50. : Which strategy can help break the cycle of poverty? (A) Currency devaluation (B) Agricultural subsidies (C) Skill development and vocational training (D) Reducing exports