AKUEB Solved MCQs, CRQs & ERQs (Grade 10th)


Chapter # 6 Economic Development – MCQs


Shamshad is planning to set up a cottage industry of handicrafts where he has hired three people. Two of them will be involved in the production and the third one in distributing the products.
To set up this industry, Shamshad would require.
A) Huge capital.
B) Imported items.
C) Local raw materials.
D) Complex technology.
Correct Answer: C) local raw materials.
Explanation: Cottage industries typically rely on local resources and raw materials for production. Since Shamshad is planning to set up a cottage industry for handicrafts, he would likely use locally sourced raw materials such as wood, clay, fabric, or any other materials commonly used in handicraft production. Option C, local raw materials, is the most suitable requirement for setting up this type of industry. Unlike large-scale industries, cottage industries generally do not require huge capital investments, imported items, or complex technology. Instead, they focus on utilizing local resources and manpower to produce goods on a smaller scale.

A region in Pakistan is surrounded by natural beauty with waterfalls and lakes, yet it has not been developed and people are economically deprived.
In order to ensure that the region mentioned should be as progressive as other regions of Pakistan, it is essential to develop
A) Health care facilities.
B) Tourism in the region.
C) Agro-based industries.
D) Educational institutions.
Correct Answer: B) tourism in the region.
Explanation: The region’s natural beauty with waterfalls and lakes presents a significant opportunity for tourism development. By promoting tourism in the area, the region can attract visitors, generate economic activity, create employment opportunities, and improve the overall socio-economic conditions of the local population. Developing tourism infrastructure such as accommodations, transportation, and recreational facilities can stimulate growth in related sectors and contribute to the region’s prosperity. Therefore, Option B, tourism in the region, is the most effective way to ensure the region’s progressiveness and economic development.

The rural areas of Sindh face economic disparity due to a rigid feudal system being prevalent in the region.
The MAJOR step that can help to counter the given problem is to
A) Establish industries.
B) Reform the education sector.
C) Develop vocational training.
D) Introduce mechanised farming.
Correct Answer: B) Reform the education sector.
Explanation: Reforming the education sector can play a crucial role in addressing economic disparity and breaking the cycle of the feudal system in rural areas. By improving access to quality education, providing opportunities for skill development, and promoting awareness of rights and opportunities, individuals in rural areas can empower themselves to pursue better economic prospects beyond traditional feudal structures. Education reform can also promote social mobility, encourage entrepreneurship, and foster a more inclusive and equitable society. Therefore, Option B, reforming the education sector, is the major step that can help counter the economic disparity caused by the rigid feudal system in rural Sind.

The mode of transportation that is essential for the rapid economic growth and accessibility within a developing country is
A) Airways
B) Railways
C) Seaways
D) Roadways
Correct Answer: D) Roadways.
Explanation: Road transportation, provided by roadways, is crucial for rapid economic growth and accessibility within a developing country. Roads serve as the primary mode of transportation for goods and people, facilitating trade, commerce, and connectivity between urban and rural areas. They enable the efficient movement of goods to markets, access to essential services such as healthcare and education, and connectivity for individuals to employment opportunities. Additionally, road infrastructure development contributes to economic development by creating jobs, stimulating investment, and promoting regional integration. Therefore, Option D, roadways, is essential for rapid economic growth and accessibility within a developing country.

The difference between the value of the country’s imports and exports for a given period, on
Visible and invisible items is known as
A) Balance of trade.
B) Balance of payment.
C) Gross national product.
D) Gross domestic product.
Correct Answer: B) Balance of payment.
Explanation: The balance of payment is a comprehensive record of all economic transactions between residents of a country and the rest of the world over a specified period, typically a year. It includes both visible items (tangible goods) and invisible items (services, transfers, etc.). The balance of payment accounts for not only the balance of trade (the difference between exports and imports of goods) but also other transactions such as services, income, and transfers. Therefore, Option B, balance of payment, is the correct term for describing the difference between the value of a country’s imports and exports for a given period, including both visible and invisible items.

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