Governance & Public Policies

Digital Economy & Public Policy MCQs with Answer

The digital economy primarily relies on:
A) Internet and digital technologies
B) Traditional brick-and-mortar businesses
C) Manual labor-intensive processes
D) Paper-based transactions

Answer
A) Internet and digital technologies

Which of the following is a key component of the digital economy?
A) E-commerce
B) Manual cash transactions
C) Traditional banking only
D) Non-digital government services

Answer
A) E-commerce

Public policy for the digital economy focuses on:
A) Regulating and enabling digital businesses
B) Banning digital transactions
C) Restricting internet access
D) Preventing digital trade

Answer
A) Regulating and enabling digital businesses

Which sector is most impacted by digital transformation?
A) Financial services
B) Only agriculture
C) Only mining industries
D) Only textile manufacturing

Answer
A) Financial services

What is the role of government in the digital economy?
A) Creating regulations and digital infrastructure
B) Eliminating digital businesses
C) Increasing bureaucracy
D) Restricting digital innovations

Answer
A) Creating regulations and digital infrastructure

Which policy is crucial for fostering a digital economy?
A) Data protection laws
B) Increasing taxes on digital businesses
C) Reducing internet access
D) Avoiding investment in technology

Answer
A) Data protection laws

A major challenge in the digital economy is:
A) Cybersecurity threats
B) Declining digital innovation
C) Increased reliance on manual work
D) Reducing internet penetration

Answer
A) Cybersecurity threats

Which technology is driving the digital economy?
A) Artificial Intelligence (AI)
B) Typewriters
C) Traditional postal services
D) Fax machines

Answer
A) Artificial Intelligence (AI)

Which of the following is an example of digital trade?
A) Online marketplaces
B) Traditional street markets
C) Physical-only retail stores
D) Barter trade

Answer
A) Online marketplaces

How does the digital economy impact employment?
A) Creates new job opportunities in tech sectors
B) Reduces employment in all industries
C) Eliminates the need for workers
D) Makes all jobs manual

Answer
A) Creates new job opportunities in tech sectors

Which organization plays a major role in global digital economy policy?
A) World Economic Forum (WEF)
B) FIFA
C) International Olympic Committee
D) World Anti-Doping Agency

Answer
A) World Economic Forum (WEF)

The digital economy contributes to GDP growth by:
A) Enhancing productivity and innovation
B) Eliminating all traditional industries
C) Increasing physical labor dependency
D) Discouraging investments in technology

Answer
A) Enhancing productivity and innovation

Which of the following is an example of financial technology (FinTech)?
A) Mobile banking apps
B) Cash-only transactions
C) Traditional bookkeeping
D) Manual record-keeping

Answer
A) Mobile banking apps

Which factor is essential for a successful digital economy?
A) High-speed internet access
B) Restrictive government policies
C) Lack of digital infrastructure
D) Avoiding investment in cybersecurity

Answer
A) High-speed internet access

Which sector benefits most from blockchain technology?
A) Financial services
B) Traditional farming
C) Brick-and-mortar retail stores
D) Manual data entry services

Answer
A) Financial services

Digital taxation policies aim to:
A) Ensure fair tax contributions from digital businesses
B) Eliminate e-commerce platforms
C) Increase taxes only on offline businesses
D) Restrict internet usage

Answer
A) Ensure fair tax contributions from digital businesses

Which of the following is a global digital payment system?
A) PayPal
B) Traditional checks
C) Barter trade
D) Postal money orders

Answer
A) PayPal

What is an economic benefit of digital banking?
A) Faster and more secure financial transactions
B) Increased fraud risk only
C) Restriction on online payments
D) Slower money transfers

Answer
A) Faster and more secure financial transactions

Which public policy measure helps boost digital entrepreneurship?
A) Startup incentives and digital infrastructure
B) Banning e-commerce startups
C) Increasing digital business restrictions
D) Removing investment in innovation

Answer
A) Startup incentives and digital infrastructure

A major challenge of digital policymaking is:
A) Balancing innovation with regulation
B) Eliminating digital businesses
C) Restricting new technology
D) Avoiding cybersecurity laws

Answer
A) Balancing innovation with regulation

Which organization regulates digital transactions in Pakistan?
A) State Bank of Pakistan (SBP)
B) Pakistan Cricket Board (PCB)
C) National Highway Authority (NHA)
D) Pakistan Telecommunication Authority (PTA)

Answer
A) State Bank of Pakistan (SBP)

Which of the following best describes the gig economy?
A) Short-term, freelance, or contract work facilitated by digital platforms
B) Permanent government jobs
C) Traditional long-term employment contracts
D) Only manufacturing jobs

Answer
A) Short-term, freelance, or contract work facilitated by digital platforms

What role does 5G technology play in the digital economy?
A) Enables faster and more efficient digital services
B) Eliminates digital connectivity
C) Reduces internet speeds
D) Restricts online trade

Answer
A) Enables faster and more efficient digital services

Which of the following is a feature of cashless economies?
A) Digital and mobile payments replacing cash transactions
B) Increased reliance on physical currency
C) Only using paper-based banking methods
D) Avoiding financial technology

Answer
A) Digital and mobile payments replacing cash transactions

Which country is considered a leader in digital economy innovation?
A) United States
B) Afghanistan
C) Somalia
D) North Korea

Answer
A) United States

Which of the following helps prevent digital fraud?
A) Strong cybersecurity measures
B) Weak online security
C) Avoiding digital verification processes
D) Lack of data protection laws

Answer
A) Strong cybersecurity measures

What is a major advantage of cloud computing in public policy?
A) Provides scalable and secure digital services
B) Increases paperwork
C) Slows down digital transformation
D) Restricts data accessibility

Answer
A) Provides scalable and secure digital services

Which of these is a major digital economy policy concern?
A) Data privacy and protection
B) Reducing access to digital tools
C) Eliminating digital businesses
D) Avoiding internet development

Answer
A) Data privacy and protection

Which technology is driving the future of the digital economy?
A) Artificial Intelligence and blockchain
B) Fax machines
C) Typewriters
D) Paper-based data management

Answer
A) Artificial Intelligence and blockchain

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