About this quiz
50 questions covering every section of the note.
This Lok Sewa practice set has 50 multiple-choice questions (Subject: Economics and Planning · For: Kharidar, Nayab Subba, Section Officer · Level: Easy). Take the quiz above first; after that, use the study list below to revise every question with its correct answer and a short explanation.
Study list: all 50 questions with answers and explanations
Which sector employs the largest share of Nepal's workforce?
- A) Industry
- B) Agriculture ✔
- C) Tourism
- D) Banking
Why: Agriculture still employs the largest share of Nepal's workers, though its share of GDP has fallen to about a quarter.
Which is the main food crop of Nepal?
- A) Wheat
- B) Paddy ✔
- C) Maize
- D) Millet
Why: Paddy (rice) is Nepal's main food crop by area and production, grown mostly in the Terai during the monsoon.
The Agriculture Development Strategy covers:
- A) 2015–2035 ✔
- B) 2000–2020
- C) 2020–2030
- D) 2010–2025
Why: The Agriculture Development Strategy (ADS) is a 20-year plan for 2015–2035 to make farming more productive, commercial and competitive.
Nepal is among the world's top producers of:
- A) Large cardamom ✔
- B) Coffee
- C) Rubber
- D) Cotton
Why: Nepal is one of the world's largest producers of large cardamom (अलैंची), grown mainly in the eastern hills.
Nepal's first tea estate was set up in:
- A) Jhapa
- B) Ilam ✔
- C) Dhankuta
- D) Kaski
Why: Nepal's first tea estate was set up in Ilam in 1920 BS (1863 AD). Ilam is still the best-known tea district.
Which was Nepal's first large modern industry?
- A) Biratnagar Jute Mill ✔
- B) Hetauda Cement
- C) Janakpur Cigarette Factory
- D) Bhrikuti Paper Mill
Why: Biratnagar Jute Mill, set up in 1993 BS (1936 AD), was Nepal's first large modern industry.
Industries are regulated by the:
- A) Industrial Enterprises Act 2076 ✔
- B) Banking Act
- C) Labour Act 2048
- D) Company Act 2021
Why: The Industrial Enterprises Act, 2076 classifies industries and sets rules for their registration, facilities and incentives.
Foreign investment is governed by:
- A) FITTA 2075 ✔
- B) BAFIA 2073
- C) Securities Act 2063
- D) Customs Act
Why: The Foreign Investment and Technology Transfer Act (FITTA), 2075 sets rules for foreign investment and technology transfer in Nepal.
Nepal's first Special Economic Zone is at:
- A) Bhairahawa ✔
- B) Birgunj
- C) Biratnagar
- D) Simara
Why: Nepal's first Special Economic Zone (SEZ) is at Bhairahawa (Rupandehi), offering tax and customs facilities to export-oriented industries.
Nepal's trade balance is:
- A) In surplus
- B) In deficit ✔
- C) Balanced
- D) Not measured
Why: Nepal imports far more than it exports, so its trade balance is in large deficit.
Nepal's largest trading partner is:
- A) China
- B) India ✔
- C) USA
- D) Bangladesh
Why: India is Nepal's largest trading partner, accounting for most of its imports and exports because of the open border and transit routes.
Nepal's second largest trading partner is:
- A) China ✔
- B) Japan
- C) UK
- D) Germany
Why: China is Nepal's second largest trading partner, mainly as a source of imports such as electronics and machinery.
Which is a major import of Nepal?
- A) Petroleum products ✔
- B) Cardamom
- C) Carpets
- D) Pashmina
Why: Petroleum products are one of Nepal's biggest imports, all bought from abroad, mainly via India.
Which is a traditional export of Nepal?
- A) Carpets ✔
- B) Petroleum
- C) Gold
- D) Vehicles
Why: Hand-knotted woollen carpets have long been a major Nepali export, along with pashmina and handicrafts.
Nepal's trade deficit is mainly financed by:
- A) Remittances ✔
- B) Gold sales
- C) Tourism only
- D) Oil exports
Why: Money sent home by Nepali workers abroad (remittances) brings in the foreign currency needed to pay for imports.
Nepal joined the WTO on:
- A) 23 April 2004 ✔
- B) 1 January 1995
- C) 14 December 1955
- D) 12 February 1996
Why: Nepal became a member of the World Trade Organization on 23 April 2004, the first LDC to join through the full accession process.
Nepal was which number member of the WTO?
- A) 101st
- B) 125th
- C) 147th ✔
- D) 160th
Why: Nepal was the 147th member of the WTO when it joined in 2004.
SAFTA stands for:
- A) South Asian Free Trade Area ✔
- B) South Asian Financial Trade Agency
- C) SAARC Agricultural Food Trade Act
- D) South Asian Free Transit Agreement
Why: SAFTA is the South Asian Free Trade Area, an agreement among SAARC countries to reduce customs duties on trade with each other.
Which body promotes Nepal's exports?
- A) TEPC ✔
- B) NEPSE
- C) IRD
- D) CAAN
Why: The Trade and Export Promotion Centre (TEPC) promotes Nepali exports through trade fairs, market information and support to exporters.
Which region of Nepal is the main food producer?
- A) Terai ✔
- B) Mountain
- C) Trans-Himalaya
- D) Kathmandu valley only
Why: The Terai, with flat fertile land and more irrigation, produces most of Nepal's food, so it is called the granary of Nepal.
Agriculture contributes roughly what share of Nepal's GDP?
- A) About a quarter ✔
- B) About 60%
- C) About 5%
- D) About half
Why: Agriculture contributes about a quarter (around 24–25%) of GDP, much less than its share of employment.
Which is the second most important cereal crop of Nepal?
- A) Maize ✔
- B) Wheat
- C) Millet
- D) Barley
Why: After paddy, maize is the second most important cereal, mainly grown in the hills. Wheat is third.
Large cardamom is mostly grown in:
- A) Eastern hills (e.g. Ilam, Taplejung) ✔
- B) Mustang
- C) Kailali
- D) Kathmandu
Why: Large cardamom grows mostly in the eastern hills, such as Ilam, Taplejung, Panchthar and Sankhuwasabha, under shade trees.
Ilam is famous for:
- A) Tea ✔
- B) Apples
- C) Jute
- D) Sugarcane
Why: Ilam is famous for tea, as well as cardamom, ginger and broom grass. It had Nepal's first tea estate.
Jumla and Mustang are famous for:
- A) Apples ✔
- B) Tea
- C) Jute
- D) Rice only
Why: Jumla and Mustang have cool temperate climates, ideal for apples. Jumla is also known for marshi rice.
Jute is grown mostly in:
- A) Eastern Terai (Morang, Jhapa) ✔
- B) Mustang
- C) Humla
- D) Kathmandu
Why: Jute grows in the hot, humid eastern Terai, mainly Morang, Jhapa and Sunsari, which supplied the Biratnagar Jute Mill.
The main purpose of irrigation projects like Sikta and Babai is to:
- A) Increase crop production ✔
- B) Generate only electricity
- C) Supply drinking water
- D) Promote tourism
Why: Sikta (Banke) and Babai (Bardiya) irrigation projects bring water to farmland so crops can be grown all year, increasing production.
Nepal Agricultural Research Council is known as:
- A) NARC ✔
- B) NEA
- C) NTB
- D) FNCCI
Why: NARC (Nepal Agricultural Research Council) researches improved seeds, breeds and farming methods for Nepal.
Which is a cottage industry product of Nepal?
- A) Pashmina ✔
- B) Steel
- C) Cars
- D) Petroleum
Why: Pashmina shawls are a handmade cottage industry product, made from fine mountain-goat wool.
FNCCI stands for:
- A) Federation of Nepalese Chambers of Commerce and Industry ✔
- B) Foreign Nepal Credit Council
- C) Federal Nepal Commerce Committee
- D) Forum of Nepal Cottage Industries
Why: FNCCI is the Federation of Nepalese Chambers of Commerce and Industry, the umbrella organisation of Nepal's private sector.
Hetauda Industrial District was established with help from:
- A) USA ✔
- B) China
- C) Japan
- D) India
Why: Hetauda Industrial District (Makwanpur) was set up in the 2020s BS with support from the USA (USAID).
Balaju Industrial District was set up with help from:
- A) India ✔
- B) China
- C) UK
- D) Germany
Why: Balaju Industrial District in Kathmandu was set up with Indian assistance. It was Nepal's first industrial district.
Nepal's first industrial district was:
- A) Balaju ✔
- B) Hetauda
- C) Patan
- D) Dharan
Why: Balaju Industrial District, set up around 2016/17 BS, was Nepal's first industrial district.
Gorkhapatra, Janakpur Cigarette Factory and Bansbari Leather were:
- A) Public enterprises ✔
- B) Private firms
- C) Foreign companies
- D) NGOs
Why: These were public enterprises owned by the government. Some, like Bansbari Leather and Shoe Factory, were later privatised or closed.
Which is Nepal's main source of foreign exchange?
- A) Remittances ✔
- B) Petroleum exports
- C) Gold exports
- D) Car exports
Why: Remittance from Nepali workers abroad is Nepal's largest source of foreign exchange, larger than exports, tourism or foreign aid.
Nepal's trade deficit means:
- A) Imports exceed exports ✔
- B) Exports exceed imports
- C) Trade is balanced
- D) No trade
Why: A trade deficit means the value of imports is greater than the value of exports.
Which treaty governs trade and transit with India?
- A) Nepal–India Treaty of Trade / Transit ✔
- B) Sugauli
- C) Betrawati
- D) Kerung
Why: Nepal and India have separate treaties: the Treaty of Trade and the Treaty of Transit, which lets Nepal use Indian ports such as Kolkata and Visakhapatnam.
The Trade and Export Promotion Centre is known as:
- A) TEPC ✔
- B) NTB
- C) NRB
- D) FNCCI
Why: The Trade and Export Promotion Centre is known as TEPC.
SAFTA came into force in:
- A) 2006 ✔
- B) 1995
- C) 2015
- D) 1985
Why: The SAFTA agreement was signed in 2004 in Islamabad and came into force in 2006.
Nepal joined BIMSTEC in:
- A) 2004 ✔
- B) 1997
- C) 2015
- D) 1985
Why: Nepal joined BIMSTEC in 2004, along with Bhutan. BIMSTEC links South and South-East Asian countries around the Bay of Bengal.
WTO headquarters is in:
- A) Geneva ✔
- B) New York
- C) Paris
- D) Rome
Why: The World Trade Organization, set up in 1995, has its headquarters in Geneva, Switzerland.
Nepal is scheduled to graduate from Least Developed Country (LDC) status in:
- A) 2026 ✔
- B) 2015
- C) 2030
- D) 2040
Why: The UN approved Nepal's graduation from Least Developed Country status, scheduled for November 2026, after meeting the income, human assets and vulnerability criteria.
Which is NOT a cash crop?
- A) Paddy ✔
- B) Tea
- C) Cardamom
- D) Ginger
Why: Paddy is mainly a food crop grown for eating. Cash crops such as tea, sugarcane, jute and cardamom are grown mainly to sell.
The 'Prime Minister Agriculture Modernisation Project' focuses on:
- A) Zones, blocks and pockets ✔
- B) Highways
- C) Hydropower
- D) Tourism
Why: The project develops specialised production areas called pockets, blocks, zones and super zones, each focusing on particular crops or livestock.
Which body regulates foreign investment approvals for large projects?
- A) Investment Board Nepal ✔
- B) NRB only
- C) NTB
- D) CAAN
Why: Investment Board Nepal (IBN), chaired by the Prime Minister, approves and facilitates large investment projects above a set size.
SEZ stands for:
- A) Special Economic Zone ✔
- B) State Export Zone
- C) Small Enterprise Zone
- D) Secure Economic Zone
Why: SEZ means Special Economic Zone: an area with special tax, customs and labour rules to attract export industries. Bhairahawa was the first.
Chemical fertiliser in Nepal is mainly:
- A) Imported ✔
- B) Produced in large plants
- C) Exported
- D) Not used
Why: Nepal has no chemical fertiliser factory, so fertiliser is imported, and shortages often happen in planting seasons.
The Terai is the main food producing region because of:
- A) Flat fertile land and irrigation ✔
- B) Cold climate
- C) Snow
- D) Minerals
Why: The Terai has flat, fertile alluvial soil, a warm climate and more irrigation, so it grows most of Nepal's food.
Which industry uses limestone?
- A) Cement ✔
- B) Tea
- C) Jute
- D) Garment
Why: Limestone is the main raw material for cement. Nepal has cement factories near limestone deposits, such as in Udayapur and Hetauda.
Carpets made in Nepal are mainly:
- A) Hand-knotted woollen carpets ✔
- B) Plastic mats
- C) Silk only
- D) Machine-made
Why: Nepali carpets are mainly hand-knotted woollen carpets, a Tibetan-style craft that grew strongly in the Kathmandu Valley from the 1960s.