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

Chapter # 6 Economic Development – MCQs

Pakistan can achieve POSITIVE balance of trade by

A) Increasing exports.

B) Increasing imports.

C) Establishing new ports.

D) Promoting the tourism industry.

Correct Answer: A) Increasing exports.

Explanation: A positive balance of trade occurs when a country’s exports exceed its imports, resulting in a surplus. By increasing exports, Pakistan can earn more revenue from selling goods and services to other countries than it spends on imports. This surplus contributes to a positive balance of trade, strengthens the country’s economy, and supports economic growth. Therefore, Option A, increasing exports, is the most effective way for Pakistan to achieve a positive balance of trade.

The major contributor in the exports of Pakistan is

A) Cottage Industry

B) Textile Industry

C) Steel Mills

D) Cement Industry

Correct Answer: B) Textile Industry

Explanation: The textile industry is a cornerstone of Pakistan’s economy and a significant contributor to its exports. Pakistan is renowned globally for its textile manufacturing capabilities, encompassing a wide range of products such as cotton yarn, fabrics, garments, and home textiles. The textile sector accounts for a substantial portion of Pakistan’s total export earnings, playing a pivotal role in driving economic growth, generating employment opportunities, and sustaining livelihoods. The industry’s prominence is attributed to factors such as abundant availability of cotton, skilled labor force, and favorable government policies aimed at promoting textile exports. Therefore, the Textile Industry (Option B) stands out as the primary driver of Pakistan’s export sector.

Pakistan can improve the negative balance of trade by

A) Increasing exports

B) Increasing imports

C) Getting aids from friend countries

D) Decreasing Exports

Correct Answer: A) Increasing exports.

Explanation: A negative balance of trade occurs when a country’s imports exceed its exports, resulting in a trade deficit. To address this imbalance and improve the trade situation, Pakistan should focus on increasing its exports. By boosting exports of goods and services to other countries, Pakistan can generate more revenue and reduce its trade deficit. This can be achieved through various measures such as promoting local industries, enhancing productivity and competitiveness, diversifying export markets, and implementing trade policies that facilitate export growth. Increasing exports not only helps in narrowing the trade gap but also stimulates economic growth, creates jobs, and strengthens the country’s overall trade position. Therefore, Option A, increasing exports, is the most effective strategy for Pakistan to improve its negative balance of trade.

Pakistan Steel Mill was established with the cooperation of

A) France

B) Russia

C) China

D) America

Correct Answer: B) Russia

Explanation: The Pakistan Steel Mills Corporation (PVT) LTD., also known as PSMC, is a state-owned company established in Pakistan in 1973. It was set up with the cooperation and assistance of the Soviet Union (which included Russia after the dissolution of the Soviet Union in 1991). The Soviet Union provided technical assistance, expertise, and financial support for the establishment of the Pakistan Steel Mills, making Russia the key cooperating partner in its formation. Therefore, Option B, Russia, is the correct answer.

The industries where sports goods and surgical items are being made, are categorized as

A) Cottage Industries

B) Small Scale Industries

C) Large Scale Industries

D) Tertiary Industries

Correct Answer: B) Small Scale Industries

Explanation: Small scale industries typically involve the production of goods on a small scale, often with limited capital investment and a relatively small workforce. Sports goods and surgical items manufacturing often fall within the realm of small-scale industries, as they can be produced in smaller workshops or factories using less sophisticated machinery and equipment compared to large-scale industrial operations. Small scale industries play a significant role in employment generation and contribute to the economy by providing essential goods and services. Therefore, Option B, Small Scale Industries, is the appropriate categorization for industries producing sports goods and surgical items.