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Basic of Economicseconomics-mcqs › basic-of-economics
Published
26 May 2019
Last updated
28 May 2026

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What term describes an international trade strategy where a country deliberately devalues its currency and raises trade barriers to benefit itself at the cost of other nations?

Multiple choice question for Basic of Economics. Select an option, then review the explanation below.

Choose the correct answer

Explanation

The 'Beggar-thy-neighbor' policy refers to actions like competitive currency devaluation and imposing higher trade barriers aimed at improving a country's own economic position while harming its trading partners. This contrasts with nationalist, domestic, or protectionist policies, which do not necessarily involve harming other countries.

Practice related questions from the same subject.

  1. 1.Which of the following best describes deflation?
  2. 2.Under what condition can two nations benefit from engaging in international trade?
  3. 3.Which of the following represents a legitimate form of currency?
  4. 4.Which political ideology is best summarized by the phrase, "From each according to his ability, to each according to his needs"?
  5. 5.Which type of currency experiences a decline in its exchange rate due to a continuous balance of payments deficit?

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