Solved Past Paper
SPSC Lecturer Economics Past Paper 29 April 2024
Practice and review SPSC Lecturer Economics Past Paper 29 April 2024 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 is a tool of fiscal policy?
World Leaders in News
PYQ
a
Open market operations
b
Discount rate
c
Government spending
d
Reserve requirement
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2
A profit maximizing firm under perfect competition will produce:
Perfect Competition
PYQ
a
Only in the first stage of production
b
Never in the range where MP is diminishing
c
Always in the range where MP is diminishing
d
Never in the range where AP is diminishing
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3
The market structure of monopoly is characterized by:
Monopoly and Price Discrimination
PYQ
a
A single firm producing a good that lacks close substitutes
b
Differentiated products produced by different firms
c
Extensive non-price competition
d
Marginal revenue [MR] less than price for several firms
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4
What is the primary objective of a central bank's monetary policy?
Central Banking and Monetary Policy
PYQ
a
Maximizing Government revenue
b
Achieving price stability and controlling inflation
c
Generating profits for shareholders
d
Encouraging consumer spending
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5
Which sector typically contributes the largest share to Pakistan's GDP (Gross Domestic Product)?
Services Sector of Pakistan
PYQ
a
Agriculture
b
Services
c
Industry
d
Information Technology and Telecommunication
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6
The Phillips curve illustrates the relationship between:
Phillips Curve and Inflation-Unemployment Tradeoff
PYQ
a
Inflation and unemployment
b
Inflation and GDP growth
c
Government spending and GDP growth
d
Interest rates and investment
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7
All of the following are parts of the business cycle except:
Business Cycles and Economic Fluctuations
PYQ
a
Boom
b
Slump
c
Recovery
d
Acceleration
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8
The GDP (Gross Domestic Product) of a country is $100 billion. If government spending is $20 billion, Investment is $10 billion and net exports are -$5 billion, what is consumption spending?
Nature and Scope of Economics
PYQ
a
$75 billion
b
$80 billion
c
$85 billion
d
$90 billion
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9
Islamabad isn't ______ Lahore.
Nature and Scope of Economics
PYQ
a
As cheap than
b
So cheap than
c
So cheap that
d
As cheap as
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10
When both the demand and the supply curves shift to the right due to any reason then:
Oligopoly and Kinked Demand Curve
PYQ
a
The quantity traded and price of the good increase for sure
b
Quantity traded increases for sure but prices decrease
c
Quantity traded increases for sure but prices remain constant
d
Quantity traded increases for sure but nothing could be said about prices
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11
Given own price elasticity equal to -2.5 implies that if the price of the good increases by Rs.10 then the quantity demanded of the good:
Elasticity of Demand
PYQ
a
Will decrease by 2.5 units
b
Will increase by 2.5 units
c
Will decrease by 25%
d
Will decrease by 2.5 %
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12
Which of the following oligopoly model are concerned with the maximization of joint profit?
Cartels and Collusive Oligopoly
PYQ
a
Collusive model
b
Bertrand model
c
Cournot model
d
Edgeworth model
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13
Total revenue equals:
Nature and Scope of Economics
PYQ
a
Price times quantity
b
Marginal revenue times marginal cost
c
Profit per unit of output
d
Total cost minus profit
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14
According to classical economic theory, a decrease in the money supply would.
Economic Systems: Capitalism, Socialism, and Mixed Economy
PYQ
a
raise the price level and output in the economy
b
Lower the price level and output in the economy
c
Lower the price level in the economy
d
Raise the price level and lower output in the economy
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15
The biggest challenge for Pakistani's economy in FY 2022-23 was:
Economic Systems: Capitalism, Socialism, and Mixed Economy
PYQ
a
Low literacy rate
b
Rising inflation
c
Low employment
d
Current account deficit
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16
The aggregate demand curve slopes downward because of the:
Oligopoly and Kinked Demand Curve
PYQ
a
Wealth effect
b
Interest rate effect
c
Exchange rate effect
d
All of these
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17
Frictional unemployment often occurs when:
Economic Systems: Capitalism, Socialism, and Mixed Economy
PYQ
a
The economy enters a recession
b
People first enter the labour force
c
People are discriminated against
d
People lose a job because their skills are no longer needed
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18
A company has a cost function C(Q) = 2 Q² + 10Q + 50 . What is the marginal cost of producing the 11th unit of output?
Nature and Scope of Economics
PYQ
a
$22
b
$30
c
$40
d
$54
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19
What is the Antonym of "Ubiquitous"?
Nature and Scope of Economics
PYQ
a
Universal
b
Abundant
c
Pervasive
d
Scarce
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20
What synonym of "Lethargy" is:
Nature and Scope of Economics
PYQ
a
Laxity
b
Serenity
c
Active
d
Bold
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21
If demand function for good X is given by X^d = 1500 - 1.3P_x - 1.8P_y +2I then we know that:
Income, Substitution, and Price Effects
PYQ
a
Own price elasticity is -1.3
b
Goods X and Y are substitute to each other
c
Goods X and Y are complements to each other
d
Income Elasticity of X is -2 (E) Both A and D
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22
All profit-maximizing firm will hire more labour up to the point where the:
Nature and Scope of Economics
PYQ
a
Average physical product of labour equals the nominal wage
b
Last unit of labour adds equally to total revenue and total cost
c
Marginal product of Labour is at its maximum value
d
Value of output most greatly exceeds labour's marginal factor cost
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23
A purely competitive firm will produce where P = MC because this:
Nature and Scope of Economics
PYQ
a
Is good for society
b
Is all that is permitted by law
c
Maximizes profits
d
Allows price adjustment but not quantity adjustment
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24
What does the term "lender of last resort" refer to in the context of central banking?
Central Banking and Monetary Policy
PYQ
a
A central bank providing loans to commercial banks during times of financial crisis
b
A Commercial bank providing loans to the central bank
c
A central bank offering loans to foreign governments
d
A government agency providing loans to individuals and businesses
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25
The difference between the Gross value added and Net value added is:
Nature and Scope of Economics
PYQ
a
Investment
b
Value added
c
Production flow
d
Depreciation
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26
The term "crowding out" refers to:
Nature and Scope of Economics
PYQ
a
The decrease in private investment that occurs when government borrowing increases
b
The increase in private investment that occurs when government borrowing decreases
c
The increase in government spending that occurs when private investment increases
d
The increase in government spending that occurs when private investment decreases
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27
The period of the business cycle in which real GDP is increasing is called the:
Business Cycles and Economic Fluctuations
PYQ
a
Expansion
b
Peak
c
Recession
d
Trough
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28
If the household consumes along the budget constraint where MU_x/P_x > MU_y/P_y then assuming normal preferences, we are sure that:
Nature and Scope of Economics
PYQ
a
MU_x > MU_y
b
Price of X is greater than price of Y
c
The household could increase his total utility by consuming more of X and less of Y
d
The household could increase his total utility by consuming less of X and more of Y
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29
Choose the Antonym of "Expand" is :
Nature and Scope of Economics
PYQ
a
Congest
b
Conclude
c
Condense
d
Covert
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30
We gave _____ a meal:
Nature and Scope of Economics
PYQ
a
At the visitors
b
For the visitor
c
To the visitor
d
The visitors
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31
Inferior goods are the goods which:
Public Goods and Merit Goods
PYQ
a
Have zero income elasticity
b
Have negative income elasticity
c
Have less than one but greater than zero income elasticity
d
People have no preference of consuming
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32
In monopolistic competition, product differentiation refers to:
Monopolistic Competition
PYQ
a
Offering products that are similar but not identical
b
Offering identical products to consumers
c
Offering unique products with no substitutes
d
Offering products at the same price as competitors.
Also appeared in
33
In production theory, the short run is a period:
Nature and Scope of Economics
PYQ
a
Sufficient to adopt new technology
b
Generally less than three years
c
During which at least one resource is fixed
d
When only labour can be varied
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34
Which of the following could cause the aggregate demand curve to shift to the left?
Demand and Supply of Money
PYQ
a
An increase in the money supply
b
Contractionary demand management policies
c
An increase in government spending
d
Expansionary demand management policies
Also appeared in
35
What is the correct formula for GDP Deflator?
Nature and Scope of Economics
PYQ
a
Nominal GDP - (minus) Real GDP
b
Nominal GDP + Real GDP
c
Nominal GDP / Real GDP
d
Real GDP / Nominal GDP
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36
The Solow Growth Model predicts that:
Solow-Swan Growth Model
PYQ
a
The rich will get richer and the poor will get poorer
b
Rich nations will grow faster than poor nations
c
The rich will get poorer and the poor will get richer
d
Poor nations will grow faster than rich nations
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37
Theory of comparative advantage was presented by:
Comparative Advantage Theory
PYQ
a
Adam Smith
b
David Ricardo
c
Ohlin
d
Hicks
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38
The standard deviation of a data set tells us:
Nature and Scope of Economics
PYQ
a
The average distance from the mean
b
The exact values in the data set
c
How many data points there are
d
The highest and lowest values
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39
What is the similar meaning word of 'Abhor' :
Nature and Scope of Economics
PYQ
a
Love
b
Hate
c
Prefer
d
Admire
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40
What is the similar meaning word of "Virtue"?
Nature and Scope of Economics
PYQ
a
Vice
b
Appropriate
c
Evil
d
Goodness
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41
At any level of output where short run average cost curve is tangent to the long run average cost curve then we also have:
Short-run Cost Curves
PYQ
a
LMC > SMC
b
LMC < SMC
c
LMC = SMC
d
LMC = LAC (E) LMC < SMC
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42
In monopolistic competition, long-run equilibrium involves:
Monopolistic Competition
PYQ
a
Zero economic profit
b
Perfect price discrimination
c
Excess capacity
d
Homogeneous products
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43
If the elasticity of demand for a product is -0.5, this means that:
Elasticity of Demand
PYQ
a
Demand is perfectly elastic
b
Demand is inelastic
c
Demand is unit elastic
d
Demand is elastic
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44
The monetary base consists of:
State Bank of Pakistan and Monetary Policy
PYQ
a
Reserve at the Federal Reserve plus vault cash
b
Deposits of member banks at the Federal reserve
c
Euro-dollars and foreign deposits at the Federal Reserve
d
Reserves plus currency in circulation
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45
The natural rate of unemployment is:
Economic Systems: Capitalism, Socialism, and Mixed Economy
PYQ
a
The unemployment rate that exists when the economy is in a boom
b
The unemployment rate that exists when the economy is in a recession
c
The unemployment rate that exists when the economy is at full employment
d
The unemployment rate that exists when the economy is in a depression
Also appeared in
46
If Fiscal Policy is trying to promote stability and economic growth through tax cuts, what type of policy is Fiscal policy using?
Public Revenue and Fiscal Policy
PYQ
a
Expansionary Fiscal Policy
b
Restrictive Fiscal Policy
c
Easy Money Policy
d
Tight Money Policy
Also appeared in
47
MFN is the abbreviation of:
Nature and Scope of Economics
PYQ
a
The most favored nation
b
The most favorite nation
c
The most friendly nation
d
None of these
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48
How much ____ where you live?
Nature and Scope of Economics
PYQ
a
Do houses cost
b
Does houses cost
c
Does cost houses
d
Do cost house
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49
What synonym of "Arrogant" is:
Nature and Scope of Economics
PYQ
a
Humble
b
Conceited
c
Progressive
d
Noble
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50
Which one is the synonym for "humble"?
Nature and Scope of Economics
PYQ
a
Modest
b
Headstrong
c
Timeless
d
None of these
Also appeared in
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Topic Weightage
Nature and Scope of Economics
44%
Economic Systems: Capitalism, Socialism, and Mixed Economy
8%
Central Banking and Monetary Policy
4%
Business Cycles and Economic Fluctuations
4%
Oligopoly and Kinked Demand Curve
4%
Elasticity of Demand
4%
Monopolistic Competition
4%
World Leaders in News
2%
Perfect Competition
2%
Monopoly and Price Discrimination
2%
Services Sector of Pakistan
2%
Phillips Curve and Inflation-Unemployment Tradeoff
2%
Cartels and Collusive Oligopoly
2%
Income, Substitution, and Price Effects
2%
Public Goods and Merit Goods
2%
Demand and Supply of Money
2%
Solow-Swan Growth Model
2%
Comparative Advantage Theory
2%
Short-run Cost Curves
2%
State Bank of Pakistan and Monetary Policy
2%
Public Revenue and Fiscal Policy
2%