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FPSC Lecturer Test → 1. English Section 2. Subject Section 3. Education Section

FPSC Economics Lecturer Test → Economics Past Test Papers Questions from 21 to 30

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21. Total costs increases from £500 to £600 when output increases from 20 to 30 units. Fixed costs are £200. Which of the following is true?
(A) Marginal cost is £20
(B) Average cost falls
(C) Variable cost rises by £100
(D) Average fixed cost is £100

22. If marginal product is below average product
(A) The total product will fall
(B) The average product will fall
(C) Average variable costs will fall
(D) Total revenue will fall

23. Firms in perfect competition face a
(A) Perfectly elastic demand curve
(B) Perfectly inelastic demand curve
(C) Perfectly elastic supply curve
(D) Perfectly inelastic supply curve

24. In the long run equilibrium in perfect competition
(A) Price = average cost = marginal cost
(B) Price = average cost = total cost
(C) Price = marginal revenue = total cost
(D) Total revenue = total variable cost

25. A monopolist faces
(A) An upward sloping demand curve
(B) A perfectly elastic demand curve
(C) A downward sloping demand curve
(D) none of these

26. If a few firms dominate an industry the market is known as
(A) Monopolistic competition
(B) Competitively monopolistic
(C) Duopoly
(D) Oligopoly

27. In a cartel member firms may be given a fixed amount to produce. This amount is called a
(A) Limit
(B) Factor
(C) Quota
(D) Quotient

28. In the Kinked Demand Curve theory it is assumed that
(A) An increase in price by the firm is not followed by others
(B) An increase in price by the firm is followed by others
(C) A decrease in price by the firm is not followed by others
(D) Firms collude to fix the price

29. In Game Theory
(A) Firms are always assumed to act independently
(B) Firms are always assumed to cooperate with each other
(C) Firms always collude as part of a cartel
(D) Firms consider the actions of others before deciding what to do

30. In monopolistic competition firms profit maximize where
(A) Marginal revenue = Average revenue
(B) Marginal revenue = Marginal cost
(C) Marginal revenue = Average cost
(D) Marginal revenue = Total cost

ANSWERS: FPSC ECONOMICS PAST TEST PAPERS
21. (C)
22. (B)
23. (A)
24. (A)
25. (C)
26. (D)
27. (C)
28. (C)
29. (D)
30. (B)