Economics

Economic Role of CPEC in Pakistan MCQs with Answers

What does CPEC stand for?
a) China-Pakistan Economic Corridor
b) Central-Pakistan Economic Cooperation
c) China-Pakistan Education Corporation
d) Central-Pacific Economic Corridor

Answer
a) China-Pakistan Economic Corridor

Which of the following is a primary objective of CPEC?
a) To improve political relations between China and India
b) To promote trade and economic development between China and Pakistan
c) To limit trade between China and Pakistan
d) To build a military alliance between China and Pakistan

Answer
b) To promote trade and economic development between China and Pakistan

What is the total investment expected from CPEC?
a) $15 billion
b) $50 billion
c) $62 billion
d) $100 billion

Answer
c) $62 billion

Which of the following sectors is a major focus of CPEC?
a) Education and health
b) Infrastructure and energy
c) Agriculture and forestry
d) Textiles and garments

Answer
b) Infrastructure and energy

What is one of the economic benefits of CPEC for Pakistan?
a) Increased dependence on foreign loans
b) Improved infrastructure and energy supply
c) Decline in foreign investment
d) Reduced exports from Pakistan

Answer
b) Improved infrastructure and energy supply

How does CPEC impact Pakistan’s GDP?
a) It reduces Pakistan’s GDP
b) It has no impact on Pakistan’s GDP
c) It is expected to boost Pakistan’s GDP by 2-3%
d) It only affects the GDP of China

Answer
c) It is expected to boost Pakistan’s GDP by 2-3%

Which project under CPEC aims to address Pakistan’s energy crisis?
a) Gwadar Port
b) Thar Coal Power Project
c) Karakoram Highway
d) Gawadar Free Zone

Answer
b) Thar Coal Power Project

How does CPEC improve Pakistan’s trade connectivity?
a) By limiting imports from China
b) By constructing new highways, railways, and ports
c) By reducing the number of international trade routes
d) By decreasing exports to China

Answer
b) By constructing new highways, railways, and ports

Which city is a key hub for CPEC’s transportation network?
a) Islamabad
b) Lahore
c) Gwadar
d) Karachi

Answer
c) Gwadar

What is the primary source of financing for CPEC projects?
a) Loans from the United States
b) Grants from the United Nations
c) Investments from China
d) Funding from the World Bank

Answer
c) Investments from China

Which of the following is a key infrastructure project under CPEC?
a) Lahore Metro
b) Karakoram Highway expansion
c) Rawalpindi-Islamabad Motorway
d) Multan-Sukkur Motorway

Answer
b) Karakoram Highway expansion

How does CPEC impact Pakistan’s employment?
a) It reduces job opportunities
b) It creates new job opportunities in construction, energy, and logistics sectors
c) It eliminates jobs in the public sector
d) It has no effect on employment

Answer
b) It creates new job opportunities in construction, energy, and logistics sectors

Which of the following is a concern regarding CPEC?
a) The project’s high financing cost
b) The limited investment opportunities in Pakistan
c) The increasing dependency on China
d) The lack of infrastructure in Pakistan

Answer
c) The increasing dependency on China

Which of the following CPEC-related developments would directly benefit Pakistan’s energy sector?
a) Thar Coal Project
b) Gwadar Port
c) Karakoram Highway
d) Gilgit-Baltistan Tourism Projects

Answer
a) Thar Coal Project

What is the strategic importance of Gwadar Port for Pakistan in CPEC?
a) It offers a route for maritime trade between China and Europe
b) It reduces trade competition with India
c) It limits Pakistan’s access to global markets
d) It serves as a tourist destination only

Answer
a) It offers a route for maritime trade between China and Europe

How does CPEC contribute to Pakistan’s industrial growth?
a) By increasing imports of low-cost goods
b) By enhancing industrial infrastructure and logistics
c) By eliminating local industries
d) By reducing foreign investment in industries

Answer
b) By enhancing industrial infrastructure and logistics

What role does CPEC play in Pakistan’s regional trade?
a) It isolates Pakistan from regional markets
b) It strengthens Pakistan’s trade ties with China and other regional countries
c) It limits Pakistan’s export capacity
d) It decreases the efficiency of regional trade routes

Answer
b) It strengthens Pakistan’s trade ties with China and other regional countries

Which of the following is expected to be a direct result of CPEC’s transportation projects in Pakistan?
a) Increased road congestion and pollution
b) Reduced traffic in major cities
c) Improved trade routes and faster transportation
d) Decreased access to remote areas

Answer
c) Improved trade routes and faster transportation

How is Pakistan expected to benefit from CPEC’s energy projects?
a) By relying more on coal imports
b) By increasing electricity generation and reducing shortages
c) By reducing the reliance on renewable energy
d) By limiting energy exports to neighboring countries

Answer
b) By increasing electricity generation and reducing shortages

Which of the following sectors is not directly impacted by CPEC?
a) Energy
b) Infrastructure
c) Defense
d) Tourism

Answer
c) Defense

How does CPEC contribute to Pakistan’s foreign exchange reserves?
a) By increasing trade with European countries
b) By attracting foreign direct investment from China
c) By reducing the amount of foreign aid from other countries
d) By limiting Pakistan’s trade relations with other countries

Answer
b) By attracting foreign direct investment from China

What is the significance of the “CPEC Free Trade Zone” for Pakistan?
a) It will attract global brands to Pakistan
b) It limits Pakistan’s export capacity
c) It will reduce the competitiveness of local businesses
d) It will create new investment opportunities and jobs in Pakistan

Answer
d) It will create new investment opportunities and jobs in Pakistan

What is the role of CPEC in improving Pakistan’s agricultural sector?
a) By promoting industrialization over agriculture
b) By increasing reliance on imports of agricultural products
c) By providing better transportation and logistics for agricultural exports
d) By limiting the export of agricultural products

Answer
c) By providing better transportation and logistics for agricultural exports

Which international institution supports the financing of CPEC projects?
a) World Bank
b) Asian Infrastructure Investment Bank (AIIB)
c) International Monetary Fund (IMF)
d) United Nations Development Programme (UNDP)

Answer
b) Asian Infrastructure Investment Bank (AIIB)

How does CPEC impact Pakistan’s regional connectivity?
a) It isolates Pakistan from Central Asia
b) It strengthens Pakistan’s trade routes with Central Asia, China, and the Middle East
c) It decreases Pakistan’s access to neighboring countries
d) It has no impact on regional connectivity

Answer
b) It strengthens Pakistan’s trade routes with Central Asia, China, and the Middle East

What is the role of the “CPEC Special Economic Zones” for Pakistan?
a) They provide a space for Chinese manufacturing companies only
b) They promote industrial growth, job creation, and export-oriented businesses
c) They focus solely on agricultural development
d) They limit the investment opportunities for local businesses

Answer
b) They promote industrial growth, job creation, and export-oriented businesses

How does CPEC contribute to the development of Pakistan’s tourism sector?
a) By increasing domestic tourism only
b) By attracting international tourists through improved infrastructure
c) By limiting tourism to rural areas
d) By reducing the number of hotels and accommodations

Answer
b) By attracting international tourists through improved infrastructure

What is one of the expected outcomes of CPEC on Pakistan’s trade balance?
a) A reduction in trade deficits
b) A decrease in exports to China
c) Increased reliance on imports from Europe
d) A drop in local manufacturing

Answer
a) A reduction in trade deficits

What is the long-term objective of CPEC for Pakistan’s economy?
a) To increase the country’s reliance on foreign aid
b) To achieve self-sustained economic growth and development
c) To reduce the role of the private sector
d) To limit trade relations with neighboring countries

Answer
b) To achieve self-sustained economic growth and development

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