FPSC | Tests | Preparation Material | Syllabus | Jobs
FPSC Lecturer Test → 1. English Section 2. Subject Section 3. Education Section
FPSC Economics Lecturer Test → Economics Lecturer Sample Paper Questions from 31 to 40
Pages: 1 | 2 | 3 | 4 | 5
31. If new firms enter a market, but demand stays the same, it can be predicted that
(A) Consumer surplus will fall
(B) Prices are likely to fall
(C) There will be reduced economic welfare
(D) Prices are likely to rise
32. If an indirect tax is imposed on a good which has a very elastic PED, the burden, or incidence, of the tax is
(A) Mainly on the consumer
(B) Mainly on the producer
(C) Equally shared
(D) All on the producer
33. The effect of a subsidy is to
(A) Shift the supply curve downwards and to the right
(B) Shift the supply curve upwards and to the left
(C) Reduce demand
(D) Reduce consumer surplus
34. If the government imposes a minimum price below the existing market price it will
(A) Cause supply to shift to the left
(B) Cause demand to contract
(C) Cause supply to contract
(D) Have no effect
35. If the government imposes a maximum price below the existing market price it will
(A) Cause supply to expand
(B) Cause demand to contract
(C) Create a shortage
(D) Create a surplus
36. A market can fail in all of the following cases, except
(A) Under-supply of public goods
(B) Under-supply of merit goods
(C) Not labelling foods which contain unhealthy ingredients
(D) Creating incentives through the price mechanism
37. The price mechanism works mainly through
(A) Incentives and signalling
(B) Taxes and subsidies
(C) Minimum and maximum prices
(D) Government spending and welfare benefits
38. Public goods will be under-supplied in a market economy because public goods exhibit
(A) Reject-ability
(B) Diminish-ability
(C) Non-excludability
(D) Zero opportunity cost
39. Road congestion can be reduced by all of the following, except
(A) Subsidising car production
(B) Taxing car ownership
(C) Pricing road-space
(D) Improving public transport
40. The best measure of economic development is
(A) GNP
(B) HDI
(C) PQLI
(D) none of these
ANSWERS: ECONOMICS LECTURER SAMPLE TEST
31. (B)
32. (B)
33. (A)
34. (D)
35. (C)
36. (D)
37. (A)
38. (C)
39. (A)
40. (B)