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Economics-II 2025 MCQs
1 / 20
Which of the following is the most significant factor affecting Pakistan’s food security?
Low yields, outdated farming methods, and inefficient supply chains significantly affect the availability and affordability of food.
2 / 20
The Agreement on Agriculture under the WTO primarily affects:
The WTO's Agreement on Agriculture addresses government subsidies (domestic support) and access to markets for agricultural products.
3 / 20
Which economist is associated with the concept of “Development as Freedom”?
Amartya Sen developed the idea that development should focus on expanding freedoms, such as access to education, health, and political participation—not just income or GDP growth.
4 / 20
Which of the following was a key objective of Pakistan’s land reforms?
Land reforms aimed to make agriculture more efficient and productive by reducing inequality and improving market access for small farmers.
5 / 20
Which of the following factors is most responsible for Pakistan’s persistent balance of payments crisis?
Pakistan relies heavily on a few export products (like textiles), which limits its ability to earn foreign exchange, especially when global demand shifts.
6 / 20
Pakistan’s energy mix is heavily dependent on:
Over 60% of Pakistan’s energy is generated using imported fossil fuels, making the economy vulnerable to global price fluctuations.
7 / 20
The think-tank IlD index, often used in research on Pakistan’s economy, measures:
"IlD" likely refers to Income or Inequality-related index, but it is not clearly defined here. The correct answer is none of the options provided.
8 / 20
Which of the following is the major constraint on Pakistan’s industrial growth?
Multiple factors hinder industrial growth in Pakistan, including poor infrastructure, energy shortages, and a lack of skilled labor.
9 / 20
A key criticism of Pakistan’s privatization policy is:
Privatization in Pakistan has often been criticized for being non-transparent, with allegations of favoritism and under-valuation of public assets.
10 / 20
Which of the following is a major criticism of foreign aid to Pakistan?
Aid dependence can discourage reform, increase corruption, and divert resources toward unproductive or politically motivated projects.
11 / 20
Which of the following best explains Pakistan’s rising public debt burden in recent years?
High domestic borrowing rates, reliance on concessional loans, and persistent fiscal deficits have all led to rising debt.
12 / 20
Which SDG is particularly challenging for Pakistan, given its energy mix and economic structure?
SDG 7 (Clean Energy), SDG 13 (Climate Action), and SDG 8 (Economic Growth) are all challenging for Pakistan due to fossil-fuel dependence and structural issues.
13 / 20
Pakistan’s economy is categorized as a:
According to the World Bank, Pakistan falls in the lower-middle-income group based on its GNI per capita.
14 / 20
In terms of poverty alleviation, the main challenge for Pakistan has been:
Despite several poverty alleviation programs, the distribution of resources remains highly unequal across regions and groups.
15 / 20
The tax-to-GDP ratio in Pakistan has historically remained low due to:
Pakistan’s low tax ratio is due to over-reliance on indirect taxes, weak enforcement, and exemptions for powerful groups like agriculture.
16 / 20
Water scarcity in Pakistan is primarily caused by:
Poor water management, population growth, and climate change all contribute to Pakistan's growing water crisis.
17 / 20
Foreign aid programs, such as the Kerry-Lugar-Berman Act, were designed to:
The Kerry-Lugar-Berman Act allocated aid to civilian sectors, especially for development and capacity building in education and energy.
18 / 20
The primary reason for inefficiency in Pakistan’s energy sector is:
Significant energy is lost during transmission due to outdated infrastructure, causing both inefficiencies and financial losses.
19 / 20
The informal economy in Pakistan is estimated to contribute approximately what percentage to GDP?
A large part of Pakistan’s economy operates outside formal regulatory and tax structures, contributing significantly to GDP without being fully recorded.
20 / 20
A major implication of exchange rate misalignment in Pakistan has been:
While exchange rate misalignments can impact trade and investment, none of the listed options directly capture the primary effect (e.g., overvaluation hurting exports).
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