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The MCQs below are drawn from the Governance & Public Policies subject category.
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101
Which of the following is a pure public good by standard economic definition?
A. National defense: non-excludable and non-rivalrous.
B. Cable television subscription: non-rival but excludable.
C. Fisheries in the high seas: excludable and rivalrous.
D. A toll road: non-excludable and rivalrous.
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Explanation
National defense is non-excludable and non-rivalrous, meeting the criteria of a pure public good, unlike the other examples.
102
Which macroeconomic policy mix is most appropriate to combat demand-pull inflation?
A. Contractionary fiscal and monetary policies (lower spending and higher interest rates).
B. Expansionary fiscal policy with lower taxes.
C. Loose monetary policy combined with wage subsidies.
D. Increase public investment while maintaining low interest rates.
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Explanation
Demand-pull inflation stems from excess aggregate demand, so contractionary fiscal and monetary policies reduce demand and help control inflation.
103
Which was a major social consequence of the First World War for Britain?
A. The immediate establishment of universal healthcare and full welfare provisions.
B. The complete disappearance of class distinctions and aristocratic privilege.
C. The immediate granting of full political equality to colonial subjects within the Empire.
D. An expanded role for the state in social welfare and the economy, accelerating reforms such as pensions and public health measures.
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Explanation
WWI expanded state intervention and led to increased attention to social welfare, including pensions and public health reforms, though full welfare systems developed gradually afterward.
104
Oliver Cromwell’s role in mid-17th century Britain is best described as:
A. A monarch who restored the Stuarts to the throne.
B. A conciliatory parliamentary leader who preserved the monarchy under new limits.
C. A foreign diplomat who negotiated the union with Scotland.
D. The leader of the Parliamentarian forces who became Lord Protector and governed as head of a republican-leaning commonwealth.
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Explanation
Cromwell led the Parliamentarians in the Civil War, oversaw the execution of Charles I, and ruled as Lord Protector during the republican Protectorate.
105
The most important source of a Government is :
A. Foreign loans
B. Taxes
C. Printing of new money
D. Sale of Government property
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Explanation
Taxes are the government's most important source of revenue because they provide the regular public funds needed to finance services and budgets.
106
Pakistan became Islamic Republic in which constitution _____?
A. 1956
B. 1973
C. 1962
D. None of the above
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Explanation
The 1956 Constitution was Pakistan's first full constitution and it formally declared the country the 'Islamic Republic of Pakistan'.
107
The opponent ran him __________ in public.
A. Off
B. Over
C. For
D. None of the above
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Explanation
"Ran him over" is a phrasal verb meaning to hit or knock down with a vehicle, so 'over' completes the phrase in this context.
108
Which constitution named Pakistan as Islamic Republic of Pakistan?
A. 1962
B. 1956
C. 1973
D. None of these
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Explanation
The 1956 constitution formally gave Pakistan the name ‘Islamic Republic of Pakistan’ when it was adopted.
109
Domestic revenue mobilization is key to realizing sustainable development and providing the first space to fund :
A. Trade deficit
B. Current account deficit
C. public expenditures
D. None
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Explanation
Domestic revenue mobilization creates the primary, sustainable funding space for government spending, so it is used to finance public expenditures.
110
Fiscal policy addresses :
A. Taxation
B. Government spending
C. both
D. none
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Explanation
Fiscal policy covers both taxation and government spending because it uses tax rates and public expenditure together to influence economic activity.
