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FPSC Economics Lecturer Test → Economics Lecturer Past Papers Questions from 31 to 40

Pages: 1 | 2 | 3 | 4 | 5

31. The Gini coefficient measures
(A) Income inequality
(B) Inflation
(C) Unemployment
(D) Economic growth

32. Aggregate demand will increase if
(A) Consumption falls
(B) Investment falls
(C) Exports fall
(D) Imports fall

33. If the marginal propensity to consume domestic products is 0.9 the size of the multiplier is
(A) 10
(B) 1
(C) 9
(D) 0.1

34. If the Keynesian consumption function is C = 10 + 0.8 Yd then when disposable income is £1000, what is total consumption?
(A) 0.8
(B) 800
(C) 810
(D) 0.81

35. The accelerator assumes
(A) The marginal propensity to consume is constant
(B) The economy is at full employment
(C) There is a constant relationship between net investment and the rate of change of output
(D) The multiplier is constant

36. In a regressive tax system
(A) The amount of tax paid increases with income
(B) The average rate of tax decreases with more income
(C) The average rate of tax falls as income increases
(D) The average rate of tax is constant as income increases

37. The liquidity trap occurs when the demand for money
(A) Is perfectly interest elastic
(B) Is perfectly interest inelastic
(C) Means that an increase in money supply leads to a fall in the interest rate
(D) Means that an increase in the money supply leads to an increase in the interest rate

38. Inflation
(A) Reduces the cost of living
(B) Reduces the standard of living
(C) Reduces the price of products
(D) Reduces the purchasing power of a pound

39. Free trade is based on the principle of
(A) Comparative advantage
(B) Comparative scale
(C) Economies of advantage
(D) Production possibility advantage

40. An appreciation of the currency is likely to occur if
(A) Domestic interest rates fall
(B) There is an increase in demand for imports
(C) There is an increase in demand for exports
(D) There is an increase in the balance of payments deficit

ANSWERS: ECONOMICS LECTURER PAST PAPERS
31. (A)
32. (D)
33. (A)
34. (C)
35. (C)
36. (B)
37. (A)
38. (D)
39. (A)
40. (C)