Section “A” multiple Question Answer (M.C.Qs)
Choose The correct Answer For Each From Given Option
(i) The city famous for the production of surgical goods is:
(ii) The part of wealth which is used for further production is called:
(iii) Interest free banking In Pakistan was Introduced In:
(iv) When the price of a commodity falls, it demands:
(v) Bank of England started lawful banking in the year:
(vi) The payment to the labour against his service Is called:
(vii) The ability of satisfying a want is called:
(d) None of these
(viii) Central Excise Duty is imposed by:
(a) City Government
(b) Local Administration
(c) Provincial Government
(d) Federal Government
(ix) Which of the following Is not a factor of production?
(x) In Economics, resources arc:
(xi) He is called the Father of Economics:
(a) J.S. Mill
(b) adam Smith
(c) Alfred MarehaI
(xii) The State Bank of Pakistan issued currency for the first time in:
(xiii) The economist whose theory of rent has made hlm famous:
(a) Prof. Marshall
(b) Prof. Robbins
(xiv) The part of income which is left after meetings daily expenses is called:
(xv) In socialism, production resources are owned by:
(b) Police .
(xvi) The National Bank of Pakistan came into being in the year:
(a) 1947 A.D.
(b) 1948 A.D.
(c) 1949 A.D.
(d) 1950 A.D.
(xvii) The rate of Zakat is:
(xviii)In Economics commodity exchanged by commodity called:
(a) IsIamk System
(b) barter system
(c) Foreign Trade
(d) None of them
(xix) The Pakistan Industrial Development Corporation established in the year A.D.:
(a) 1948 A.D.
(b) 1952 A.D.
(c) 1958 A.D.
(d) 1960 A.D.
(xx) Islamic Law strictly prohibits:
Section “B” Short Question Answer
Five functions of Central Bank are following.
(1) The central bank has an authority to Issue notes. It the notes of different values in different colours and deign .
(2) The central bank performs all those service. to the government which commercial banks provide to their customers. The protect the securltie. of the government. to issue loans for the government. to provide foreign currency· are the dude. of central bank.
(3) All the banks of the country follow the monetary pollciel of central bank. It is the lender of last resort to the commercial banks as a custodian and finally it acts as a book of credit clearance, settlement and tranlfer.
(iv) A central bank acts as a guardian of money market and keeps the prices on level because the circulatlon of money produces itl effects on prices.
(v) The central bank provides advisory services to the government on financial affairs
Objective Of zakat system
Five objectives of zakat system are following.
(i) Zakat provides social security to the poor. needy. handicapped and helpless persons and they can fulfill their necessities of life.
(ii) the system of zakat eliminates the difference between rich and poor.
(ill) The balance of economy can be achieved through the system of zakat.
(iv) The circulation of wealth increases throush zakat and a trend of investment is Increased.
(v) The capital is circulated among the individuals of a society and requirements of people are also fulfilled
Q.13 Mention fin causes of decreasing per capita income in Pakistan
Five causes of decreasing per capita income in Pakistan are following.
(i) The economy of Pakistan is agricultural based. 25% of the Gross National Product Is gained from agriculture but agriculture In Pakistan depends upon seasonal and climatic changes. therefore agricultural efficiency falls, due to which per capita Income is also decreased.
(ii) The increasing and rapidly growing population of Pakistan is also a cause of decreasing per capita lncome In Pakistan. 3% population of Pakistan II Increased every ear III compared to that the productive means and the opportunities of employment are very short.
(iii) The efficiency of Sawing prepare in Pakistan is very Jow which is also a cause of decreasing per capita Income.
(Professor Lionel Robbins)
Professor Robbins has an opinion that the purpose of Econcmic motive is to satisfy unlimited human wants by limited means. He further proposes that the man should follow a certain Une of action to satisfy the most important want first, he can be able to solve many of his economic problems gradually. Thul. to eeek the solution of economic problems following a certain line of action. According to Robbins it is the subject matter of Bconomlcs
The those methods are the part of the study of economics which provide help in acquiring the relentlessness and wants. The study of economics is also helpful In keeping a balanced record of the sources of Income and expenditure. This provide. help In fulfilling the wants and cellulitis within the income .0 that there would be no difficulty and peace and comfort would remain. the part of life. Be.ides thi. different human actMtJe. are teudle. in economics
The steps taken by the government in the development of agricultural sector can be described as following.
Forests arc useful in many ways to the agriculture of. country. The government of Pakistan has adopted effective measures for the development of forest a. The department of natural vegetation and forest is continuously taking steps Cortes plantation and forest extension
The government of Pakistan took steps for the improvement of irrigation system in Pakistan. The canal network has been introduced to many parts of the country, .0 that the agricultural produce may not be hindered. In this connection.. the government has also built many dams and rivers protect ln. the wastage of water and Iloring huge deposits of it
Establishment of agriculture bank
Agricultural banks have been set up throughout the country by the government of Pakistan in order to to vide to farmers on simple terms and conditions. Then b Ita fsueahort t rm well long term loan
Transport and Communication
Transport and communication is very important for the development of agriculture. The government of Pakistan paid full attention towards the development of transport and communication facilities. Old roads have been Improved and new ones have been built in large number; Railway tracks, post and telegraph, telephone and transport facilities have been greatly Improved and extended. The farmers are enabled to get benefit of it and to increase their production.
Agricultural Extension Services
Better seeds and better fertilizer are necessary for better crops. The government of Pakistan provides the farmers, fine typu of seeds and measure through Agriculture Extension Centres. Agriculture Extension centres have set up “Model Plots” and introduced the farmers with modern methods and means of cultivation.
In order to protect the rights of farmers, the government of Pakistan has introduced land Reforms. First Land Reform. were introduced in 1958 while Second Land Reforms were introduced in 1972
Development In Industries Sector
The steps taken by the government in the development of .industrial sector can be described as following.
Pakistan Industrial Development Corporation (P.I.D.C.)
For the development of induarr ia l sector, Pakistan Industrial Development Corporation (P.I.D.C.) was established in 1952. It took steps to advise and encourage the capitalist. The corporation started founding these industries which were neglected by private section. These industrial now meet have demand. and also yield foreign exchange Pakistan
Industrial Loan and Investment Corporation
Industrial Loan and Development Corporation was established by the government of Pakistan in 1957. It grants loans for a period of seven to twelve years for establishing new industrial unit
Industrial Development Bank of Pakistan
Industrial Development Bank of Pakistan (IDBP) was redoubtably the government standoff in 1961. It bearishness. to new and old both the industries, in domestic and foreign descender.
Industrial Scientific Research
An institute of scientific and industrial research was set up, by the government of Pakistan in 1949. The Council of Industrial Research was also established in 1953. Both of these institutes were set up to find out new methods of production.
The government of Pakistan has established a tariff board .’ to protect home industries. and their protection. The board impose. heavy dude. on the Imp om. It mettlesome. hamper. and restricts the Import of eertain goods.
Concession In Taxes
(iii) Social Welfare
It is the responsibility of the government to provide educational facilitates to common people. For this purpose, the educational institutes are established at country level where technical, scientific and skew development education I. provided. The government spends a lot of revenue on this settee. It I. the duty of the government to provide better health facilitates. For this purposes the management of Civil Hospital in Ellie., hospitalizations and health center on royal area needs a lase amount of revenue of the Federal Government. The means of communication’ play an important role In the welfare of citizen. The construction of metaled roads and their extension, Increase in the number of railways,’ the facilitates of telephone and fax are the head. In which the Federal Government spends million rupees every year. These mean. of communication can play their role In the economic development of Pakistan. The government is slovens proper attention for the development of welfare and economic stability.
(iv) Civil Administration
It is necessary to the government to establish different civil departments and co arrange the staff for running the affair. of these departments. The staff consists of high government offices and other workers. hence a lot of expend hires are required to manage these departments.
(v) Interest of Loan
The government have to take loans from Internal and , external resources. Thin loan can be used for a large period. The loans is used for the real period then Interest is also paid OD this loan. The amount which i. paid in the form of interest il allo included in the expenditure of government