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FPSC Economics Lecturer Test Sample

FPSC Economics Lecturer Test Sample questions Page-2. Following are the sample questions for Economics Lecturer Test Papers. View answers to the questions at the bottom of the page.

Pages: 1 | 2 | 3 | 4 | 5

  1. A movement along the demand curve may be caused by
    1. A change in income
    2. A change in the number of buyers
    3. A change in advertising
    4. A shift in supply

  2. A subsidy paid to producers
    1. Shifts the supply curve
    2. Shifts the demand curve
    3. Leads to a contraction in supply
    4. Leads to an extension of supply

  3. Which best describes consumer surplus?
    1. The price consumers are willing to pay for a unit
    2. The cost of providing a unit
    3. The profits made by a firm
    4. The difference the price a consumer pays for an item and the price he/she is willing to pay

  4. Asymmetric information occurs when
    1. Information is free
    2. Buyers and sellers have access to different information
    3. Community surplus is maximized
    4. Community surplus is minimized

  5. A public good
    1. Is provided by the government
    2. Is free
    3. Has the properties of being non-excludable and non-diminishable
    4. Has external costs

  6. Nationalization occurs when
    1. The government sells assets to a the private sector
    2. The government bans a product
    3. The government takes ownership of a business
    4. The government taxes a product to a raise its price

  7. Which one of the following statements is true?
    1. If the marginal cost is greater than the average cost the average cost falls
    2. If the marginal cost is greater than the average cost the average cost increases
    3. If the marginal cost is positive total costs are maximized
    4. If the marginal cost is negative total costs increase at a decreasing rate if output increases

  8. According to the law of diminishing returns
    1. The marginal product eventually falls as more units of a variable factor are added to a fixed factor
    2. Marginal utility falls as more units of a product are consumed
    3. The total product falls as more units of a variable factor are added to a fixed factor
    4. The marginal product eventually increases as more units of a variable factor are added to a fixed factor

  9. If a 4% increase in price leads to a increase in the quantity supplied of 8%, then
    1. Supply is price elastic
    2. Supply is income elastic
    3. Price elasticity of demand is -2
    4. Price elasticity of supply is -2

  10. An increase in price from 25 pence to 30 pence leads to an increase in the quantity supplied from 40 units to 44 units. The price elasticity of supply is
    1. +2
    2. +0.5
    3. -2
    4. -0.5

ANSWERS: FPSC ECONOMICS LECTURER TEST SAMPLE QUESTIONS

  1. D
  2. A
  3. D
  4. B
  5. C
  6. C
  7. B
  8. A
  9. A
  10. B