Solved Past Paper
SPSC Lecturer Economics Past Paper 15 March 2021
Practice and review SPSC Lecturer Economics Past Paper 15 March 2021 with verified questions, correct answer keys, and detailed solutions.
Total Questions
50 Qs
Duration Limit
100 Min
Negative Mark
0.00
Attempt Count
0
Solved Questions & Explanations
50 questions with verified answers and explanations
1
Which of the following statements about a fixed input is true?
Matrix Algebra and Input-Output Analysis
PYQ
a
Its price is fixed
b
The quantity of it that a firm can use in the short run is fixed
c
The quantity of output that the firm can produce with it is fixed
d
None of these
Also appeared in
2
The demand for labour curve:
Oligopoly and Kinked Demand Curve
PYQ
a
Is vertical
b
is horizontal
c
Slopes upward
d
Slopes downward
Also appeared in
3
Which of the following statements about economic growth is false?
Bloom’s Taxonomy in Economics Education
PYQ
a
Economic growth solves the economic problem
b
Economic growth can be helped by having new technology
c
Economic growth can be helped with more education
d
Economic growth can be helped by using total power
Also appeared in
4
Each of the following statements includes two terms, in the form of "the term mean the same as each other" to which case do the two terms not mean the same as each other?
Climate Change Economics
PYQ
a
Nominal GDP and GDP at current prices
b
Real GDP and GDP at constant prices
c
The base period and the reference period
d
Change in real GDP and the GDP at factor cost
Also appeared in
5
Lame maximizes her total utility when she allocates all of her available income such that the marginal utility per dollar spent on each goods:
Public Goods and Merit Goods
PYQ
a
Is the same
b
Is increasing
c
Is maximised
d
Is diminishing
Also appeared in
6
A binary variable is often called a ______.
Nature and Scope of Economics
PYQ
a
Dummy variable
b
Residual
c
Dependent variable
d
Power of a test
Also appeared in
7
Patents are ______ barriers to entry and public franchises are ______ barriers to entry.
Nature and Scope of Economics
PYQ
a
natural; natural
b
natural; legal
c
legal; natural
d
legal; legal
Also appeared in
8
If a competitive firm faces a competitive labour market, it will hire labour until:
Nature and Scope of Economics
PYQ
a
w = MPL
b
w = p
c
MPL = p
d
w = MPL * p
Also appeared in
9
When the demand for a good decrease, its equilibrium price ______ and equilibrium quantity ______.
Nature and Scope of Economics
PYQ
a
falls; decreases
b
falls; increases
c
rises; increases
d
rises; decreases
Also appeared in
10
Choose the correct answer: Doctors hope that the spread of the virus will slow down ______ the summer.
Nature and Scope of Economics
PYQ
a
in
b
at
c
on
d
None of these
Also appeared in
11
Cost-push inflation can start with:
Quantity Theory of Money
PYQ
a
A decrease in investment
b
A decrease in the quantity of money
c
An increase in oil prices
d
An increase in Government purchases
Also appeared in
12
Money market mutual funds invest in:
Nature and Scope of Economics
PYQ
a
Commercial real estate
b
Highly liquid assets
c
Residential mortgages
d
Long-term Government securities
Also appeared in
13
The regression R² is a measure of:
Nature and Scope of Economics
PYQ
a
Whether or not ESS=TSS.
b
The goodness of fit of your regression line.
c
Whether or not X causes Y.
d
The square of the determinant of R.
Also appeared in
14
The sellers pay the entire sales tax levied on a good when demand is perfectly ______ or supply is perfectly ______.
Demand and Supply of Money
PYQ
a
elastic; inelastic
b
inelastic; elastic
c
inelastic; inelastic
d
elastic; elastic
Also appeared in
15
Which of the following is NOT a function of money?
Climate Change Economics
PYQ
a
Unit of account
b
Medium of exchange
c
Dater
d
Store of value
Also appeared in
16
Which of the following methods of intervention in the money market has not been used in PAKISTAN since the 1980s?
State Bank of Pakistan and Monetary Policy
PYQ
a
Monetary base control
b
Interest rate control
c
A change in the regulations about banks' reserve ratios
d
None of these
Also appeared in
17
In a perfectly competitive resource market the Marginal Revenue Product Curve is:
Nature and Scope of Economics
PYQ
a
Downward sloping
b
Vertical
c
Upward sloping
d
Horizontal
Also appeared in
18
The actual budget deficit is equal to the:
Nature and Scope of Economics
PYQ
a
Structural deficit
b
Structural deficit plus the cyclical deficit
c
Cyclical deficit
d
Structural deficit minus the cyclical deficit
Also appeared in
19
In a four-sector economy, which of the following is assumed always to increase when GDP increases?
Economic Systems: Capitalism, Socialism, and Mixed Economy
PYQ
a
I
b
G
c
M
d
X
Also appeared in
20
Suppose the marginal product of labour equals 10/L. If the firm can sell its output for $10 per unit, and the wage is $1 per unit, how many units of labour will the firm hire?
Nature and Scope of Economics
PYQ
a
1
c
10
d
100
Also appeared in
21
Suppose the economy is experiencing a recessionary gap. In the long run, the money wage rate ______, unemployment ______ and the price level ______.
Economic Systems: Capitalism, Socialism, and Mixed Economy
PYQ
a
falling, rises, falls
b
falls, falls, falls
c
rises, falls, rises
d
rises, rises, rises
Also appeared in
22
The more elastic the demand facing a firm:
Nature and Scope of Economics
PYQ
a
the lower the value of the Lerner index
b
the less monopoly power it has
c
the higher its profit
d
the higher the value of the Lerner index
Also appeared in
23
Marginal utility theory assumes that when Sally must consume less of a good that she likes, her:
Marginal Productivity Theory
PYQ
a
Marginal utility increases
b
Total utility increases
c
Total utility is maximized
d
Income increases
Also appeared in
24
Macroeconomic variables:
Nature and Scope of Economics
PYQ
a
are those that determine the standard of living
b
are those that determine the cost of living
c
Include variables such as the price level and inflation rate
d
None of these
Also appeared in
25
Suppose the discount rate is 10% per year. Which of the following statements is true?
World Leaders in News
PYQ
a
The future value of Rs. 1,000 in three years' time is Rs. 1,300
b
The present value of Rs.1,300 in three years' time is Rs.1,000
c
The future value of Rs.1,331 in three years' time is Rs.1,000
d
The present value of Rs.1,331 in three years' time is Rs.1,000
Also appeared in
26
Complete the idiom "Hell hath no fury like a"?
World Leaders in News
PYQ
a
Woman scorned
b
Buried woman
c
Woman forgotten
d
Devil's advocate
Also appeared in
27
Pat's Pizza Kitchen has a total cost of $6,000 per month when it produces 20 meals. If Pat has total variable cost of $5,000, what is Pat's total fixed cost?
Nature and Scope of Economics
PYQ
a
$50
b
$250
c
$1,000
d
$6,000
Also appeared in
28
If nominal GDP is $5 trillion and the GDP deflator is 125, what is real GDP?
Nature and Scope of Economics
PYQ
a
$6.25 trillion
b
$4 trillion
c
$0.04 trillion
d
$625 trillion
Also appeared in
29
The ______ shows how real GDP varies as the quantity of labour employed varies, other things remaining the same.
Oligopoly and Kinked Demand Curve
PYQ
a
Labour demand curve
b
labour supply curve
c
short-run aggregate supply curve
d
production function
Also appeared in
30
The Kyoto protocol is a protocol to the United Nations Framework Convention on Climate Change aimed at combating:
World Leaders in News
PYQ
a
Global Economic Crises
b
Terrorism
c
Nuclear proliferation
d
Global warming
Also appeared in
31
______ occurs when a foreign firm sells its export at a lower price than it costs to produce the goods.
Public Goods and Merit Goods
PYQ
a
Learning-by-doing
b
A tariff
c
Comparative advantage
d
Dumping
Also appeared in
32
Suppose that nominal GDP per person is $18,800 in 2004. For 1998 GDP deflator is 100, and the 2004 GDP deflator is 110. The approximate real per person GDP in 2004 is:
Nature and Scope of Economics
PYQ
a
$18,800
b
$19,800
c
$16,364
d
$16,534
Also appeared in
33
Which of the following characteristics is not a precondition for economic growth:
Central Banking and Monetary Policy
PYQ
a
Monetary exchange
b
Property rights
c
Markets
d
Active fiscal and monetary policy
Also appeared in
34
Choose the correct answer: In hot countries people wear light clothes ______ cool.
Nature and Scope of Economics
PYQ
a
For keeping
b
To keep
c
For to keep
d
None of these
Also appeared in
35
A profit-maximizing monopolist finds that if it remains open, the best output is 50 a week, but at this output it would make a loss. Under what circumstances should it shut down?
Nature and Scope of Economics
PYQ
a
If AR at this output is below SAC
b
If AR at this output is below AVC
c
If MR at this output is below SAC
d
If MR at this output is below AVC
Also appeared in
36
The unemployment rate generally ______ during recessions and ______ during expansions.
Nature and Scope of Economics
PYQ
a
rises; rises
b
falls; falls
c
falls; rises
d
rises; falls
Also appeared in
37
Choose the correct answer: Water ______ at a temperature of 0 degree.
Nature and Scope of Economics
PYQ
a
Be freezing
b
Is freezing
c
Freezes
d
None of these
Also appeared in
38
When there are two coefficients, the resulting confidence sets are:
Nature and Scope of Economics
PYQ
a
trapezoids
b
Rectangles
c
Squares
d
Ellipses
Also appeared in
39
Alexander Dumas was the author of World Classic ______ .
Nature and Scope of Economics
PYQ
a
The count of Monte Cristo
b
David Copperfield
c
Germinal
d
A Christmas Carol
Also appeared in
40
Who won the Nobel Prize for Economics in 2020?
World Leaders in News
PYQ
a
Paul R. Milgrom
b
Robert B. Wilson
c
Both A & B
d
None of these
Also appeared in
41
Which of the following might help to make the distribution of original incomes more unequal?
State Bank of Pakistan and Monetary Policy
PYQ
a
A rise in the State Pension
b
A ceiling on the number of hours that people were allowed to work each week
c
A policy to encourage more low income households to buy shares in companies
d
An effective policy to reduce bankers' bonuses
Also appeared in
42
In what circumstances is an economy said to be in recession?
Economic Systems: Capitalism, Socialism, and Mixed Economy
PYQ
a
If real GDP falls in one quarter compared with the quarter before
b
If real GDP falls for two consecutive quarters
c
If real GDP falls in one year compared with the year before
d
If real GDP falls for two consecutive years
Also appeared in
43
Suppose that one month, injections in a four-sector economy are greater than withdrawals. Which of the following statements is false?
Economic Systems: Capitalism, Socialism, and Mixed Economy
PYQ
a
Planned spending will be greater than output
b
Actual investment will be less than planned investment
c
Planned investment must exceed planned saving
d
If real GDP falls for two consecutive quarters
Also appeared in
44
In new classical business cycle theory, the short-run aggregate supply curve:
Positive vs Normative Economics
PYQ
a
Is vertical
b
Is horizontal
c
has a positive slope
d
has a negative slope
Also appeared in
45
In which of the following market structures with 2 identical firms do both firms produce more than the Cournot outcome:
Perfect Competition
PYQ
a
Cartel
b
Perfect Competition
c
Stackelberg Duopoly
d
None of these
Also appeared in
46
A rule specifying the minimum percentage of deposits that must be held in currency or other safe, liquid assets is called a:
Nature and Scope of Economics
PYQ
a
Deposit requirement
b
Reserve requirement
c
Lending requirement
d
Equity capital requirement
Also appeared in
47
A well-functioning Government will produce more of ______ than a private market:
Nature and Scope of Economics
PYQ
a
An excludable good
b
A public good
c
A private good
d
A rival good
Also appeared in
48
Choose the Antonym of "Vagrant":
Nature and Scope of Economics
PYQ
a
Derelict
b
Wayfarer
c
Stable
d
Vagabond
Also appeared in
49
Nushkha Hai Wafa is the poetic collection of:
Nature and Scope of Economics
PYQ
a
Ibn-e-Insha
b
Mir Taqi Mir
c
Faiz Ahmed Faiz
d
Nasir Kazmi
Also appeared in
50
Imran Khan is the ______ Prime Minister of Pakistan.
Federal Budget Highlights
PYQ
a
20th
b
22nd
c
24th
d
27th
Also appeared in
About This Paper
This resolved pre-test includes authentic questions curated from recruitment syllabus parameters. By selecting the Attempt Online mode, you will trigger a simulated interface featuring keyboard shortcut mapping, sectional division, flagging panels, and persistence metrics.
Solved past papers are useful not only for checking scores but for reviewing explanation guidelines for tricky concepts. Download the PDF files for offline revisions.
Community Activity
0
attempts this month
Topic Weightage
Nature and Scope of Economics
50%
Economic Systems: Capitalism, Socialism, and Mixed Economy
8%
World Leaders in News
8%
Oligopoly and Kinked Demand Curve
4%
Climate Change Economics
4%
Public Goods and Merit Goods
4%
State Bank of Pakistan and Monetary Policy
4%
Matrix Algebra and Input-Output Analysis
2%
Bloom’s Taxonomy in Economics Education
2%
Quantity Theory of Money
2%
Demand and Supply of Money
2%
Marginal Productivity Theory
2%
Central Banking and Monetary Policy
2%
Positive vs Normative Economics
2%
Perfect Competition
2%
Federal Budget Highlights
2%