ECONOMY OF BHUTAN

A high __________ ratio puts pressure on the working population.

The__________ helps in cultural preservation and rural employment.

Why is economic diversification important for Bhutan?

• A. To increase imports

• B. To reduce dependency on one or two sectors

• C. To promote foreign culture

• D. To decrease employment

The private sector is called the “engine of growth” mainly because it:

• A. Imports goods

• B. Provides free services

• C. Maximizes profits only

• 
  D. Creates jobs and contributes to infrastructure and tax revenue

Analyze why the primary sector, although employing many Bhutanese, contributes less to GDP.

What is the likely impact of the “demonstration effect” on Bhutanese households?

• A. Increases savings
  

• B. Reduces consumption

• C. Encourages investment

• D. Reduces savings due to imitation of luxury lifestyles