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FPSC (Federal Public Service Commission) · ASF
Global Economic Crises and Trends
World Economy & Politics · General Knowledge
75 MCQs
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Global Economic Crises and Trends
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1
Which global financial crisis began with the collapse of major U.S. mortgage-backed securities in 2007–2008?
A. Asian Financial Crisis
B. Dot-com Bubble
C. Global Financial Crisis
D. Oil Shock Crisis
Answer & Solution
Answer:
Global Financial Crisis
The Global Financial Crisis began in 2007–2008 due to collapsing mortgage-backed securities and bank failures.
2
Which event significantly contributed to the global economic recession in 2020?
A. Brexit
B. COVID-19 pandemic
C. US–China trade war
D. Eurozone crisis
Answer & Solution
Answer:
US–China trade war
The COVID-19 pandemic caused a severe global recession due to lockdowns and disrupted supply chains.
3
Which European country faced a major sovereign debt crisis in 2010?
A. Germany
B. Italy
C. Greece
D. Portugal
Answer & Solution
Answer:
Greece
Greece experienced a severe debt crisis in 2010, requiring multiple bailout packages.
4
Which sector was at the center of the 2008 global financial crisis?
A. Real estate and housing
B. Oil and gas
C. Agriculture
D. Technology
Answer & Solution
Answer:
Real estate and housing
The crisis started with the collapse of the U.S. housing market and subprime mortgages.
5
Which global trend involves companies relocating production closer to home markets?
A. Globalization
B. Offshoring
C. Nearshoring
D. Deregulation
Answer & Solution
Answer:
Nearshoring
Nearshoring refers to moving production to neighboring or closer countries.
6
Which organization publishes the World Economic Outlook?
A. World Bank
B. IMF
C. OECD
D. ADB
Answer & Solution
Answer:
IMF
The IMF releases the World Economic Outlook twice a year.
7
Which trend is associated with rapid technological transformation across industries?
A. Deindustrialization
B. Industrial Revolution 4.0
C. Greenwashing
D. Austerity
Answer & Solution
Answer:
Industrial Revolution 4.0
Industry 4.0 involves automation, AI, robotics, and digital transformation.
8
Which commodity experienced historic negative prices in 2020 due to oversupply?
A. Gold
B. Silver
C. Oil
D. Copper
Answer & Solution
Answer:
Oil
Oil futures briefly went negative in April 2020 due to storage shortages and reduced demand.
9
Which factor is a major cause of global inflation rises in 2021–2023?
A. Low population growth
B. High agricultural output
C. Supply chain disruptions
D. Falling energy prices
Answer & Solution
Answer:
Supply chain disruptions
Supply chain issues, rising energy costs, and increased demand pushed inflation upward.
10
Which economic trend shows people leaving cities for smaller towns due to remote work?
A. Urbanization
B. Deurbanization
C. Gentrification
D. Migration reversal
Answer & Solution
Answer:
Migration reversal
Remote work led to deurbanization as people moved away from major urban centers.
11
Which crisis in 1997 affected Thailand, Indonesia, South Korea, and other Asian countries?
A. Latin American crisis
B. Asian Financial Crisis
C. Dot-com crisis
D. Oil crisis
Answer & Solution
Answer:
Latin American crisis
The 1997 Asian crisis caused severe currency devaluations and economic instability.
12
Which economic trend refers to reduced reliance on global supply chains?
A. Decoupling
B. Globalization
C. Digitization
D. Inflation targeting
Answer & Solution
Answer:
Inflation targeting
Decoupling describes countries reducing dependence on foreign suppliers.
13
Which country triggered global banking concerns with the collapse of Lehman Brothers?
A. Japan
B. United Kingdom
C. United States
D. Germany
Answer & Solution
Answer:
United States
The failure of Lehman Brothers in the U.S. triggered a global financial panic.
14
Which major global trend reflects rising importance of climate-related economic policies?
A. Green economy transition
B. Austerity policy
C. Trade liberalization
D. Urban decline
Answer & Solution
Answer:
Green economy transition
The shift toward clean energy and sustainable development drives this trend.
15
Which indicator signals a country entering a recession?
A. Rising GDP
B. Two consecutive quarters of negative GDP growth
C. Increasing employment
D. Strong consumer spending
Answer & Solution
Answer:
Two consecutive quarters of negative GDP growth
Economists commonly define recession as two quarters of economic contraction.
16
Which global trend involves rising activity in digital payments and online banking?
A. Financial deregulation
B. Fintech expansion
C. Austerity programs
D. Informalization
Answer & Solution
Answer:
Fintech expansion
Fintech growth has transformed digital payments and financial access.
17
Which region was most affected by the Eurozone sovereign debt crisis?
A. North America
B. Europe
C. Asia-Pacific
D. Middle East
Answer & Solution
Answer:
Europe
Several European countries faced debt crises, including Greece, Portugal, and Spain.
18
Which global trend accelerated as companies adopted remote and hybrid working models?
A. Automation decline
B. Workplace flexibility
C. Rise of manufacturing jobs
D. Reduction in digital skills
Answer & Solution
Answer:
Workplace flexibility
Remote and hybrid work increased workplace flexibility worldwide.
19
Which event greatly intensified global energy price volatility in 2022?
A. US–China trade tensions
B. Russia–Ukraine conflict
C. Brexit
D. Middle East peace deals
Answer & Solution
Answer:
Russia–Ukraine conflict
The conflict disrupted energy supplies and caused global price surges.
20
Which global trend describes aging populations affecting economic growth?
A. Demographic dividend
B. Population inversion
C. Population aging
D. Youth bulge
Answer & Solution
Answer:
Population aging
Population aging reduces labor force growth and pressures social systems.
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