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

FPSC Economics Lecturer Test → Economics Past Test Questions from 11 to 20

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11. The basic economic problems will not be solved by
(A) Market forces
(B) Government intervention
(C) A mixture of government intervention and the free market
(D) The creation of unlimited resources

12. A mixed economy
(A) Allocates resources via supply but not demand
(B) Allocates resources via demand but not supply
(C) Allocates resources via supply and demand
(D) Allocates resources via market forces and government intervention

13. Economic growth can be shown by
(A) An inward shift of the production possibility frontier
(B) A movement along the production possibility frontier
(C) An outward shift of the production possibility frontier
(D) A decision by the government to produce inside the production possibility frontier

14. Which best describes a demand curve
(A) The quantity consumers would like to buy in an ideal world
(B) The quantity consumers are willing to sell
(C) The quantity consumers are willing and able to buy at each and every income all other things unchanged
(D) The quantity consumers are willing and able to buy at each and every price all other things unchanged

15. If marginal cost is positive and falling
(A) Total cost is falling
(B) Total cost is increasing at a falling rate
(C) Total cost is falling at a falling rate
(D) Total cost is increasing at an increasing rate

16. If a product is an inferior good
(A) Demand is inversely related to income
(B) Demand is inversely related to price
(C) Demand is directly related to price
(D) Demand is directly related to the price of substitutes

17. Average income increases from £20,000 p.a. to £22,000 p.a. Quantity demanded per year increases from 5000 to 6000 units. Which of the following is correct?
(A) Demand is price inelastic
(B) The good is inferior
(C) Income elasticity is –2
(D) The product is normal

18. The income elasticity is +2 and income increases by 20%. Sales were 5000 units, what will they be now?
(A) 3000
(B) 7000
(C) 5500
(D) 4500

19. A reduction in the costs of production will
(A) Lead to a movement along the supply curve
(B) Shift the demand curve
(C) Shift the supply curve
(D) Lead to an extension of supply

20. If the price was fixed below the equilibrium price there would be
(A) Excess supply
(B) Excess demand
(C) Equilibrium
(D) Downward pressure on prices

ANSWERS: FPSC ECONOMICS PAST TEST
11. (D)
12. (D)
13. (C)
14. (D)
15. (B)
16. (A)
17. (D)
18. (B)
19. (C)
20. (B)