Solved Past Papers MCQs of Lecturer Economics
Solved Past Papers MCQs of Lecturer Economics for the preparation of NTS, PPSC, SPSC, BPSC, KPSC, FPSC, OTS, and other academic entry tests and jobs tests.
1. Velocity of circulation of mon+ey means
A) The number of times a unit of money changes hands daily
B) The number of times a unit of money charges hands monthly
C) The number of times a unit of money changes hands annually
D) The number of times a unit of money changes the value
2. Devaluation of currency can help to increase exports it elasticity of demand of exportable items in other countries is
A) Less than one
B) Greater than one
C) Equal to one
D) Zero
3. Exchange rate of which currency falls because of the persistent balance of payment deficit
A) Good currency
B) Hard currency
C) Silver currency
D) Soft currency
4. From each according to his ability, to each according to his need is the theoretical slogan of
A) Feudal system
B) Capitalist
C) Fascist system
D) Communist system
5. When aggregate supply exceeds aggregate demand
A) Unemployment exists
B) Price of consumer goods rise
C) Business inventory accumulates
D) People save more than they intended to save
6. Which of the following is correct
A) Consumption is a function of income
B) Consumption is a function of saving
C) Income is a function of consumption
D) Income is a function of saving
7. The Asian Development Bank (ADP) is located in
A) Kuala Lumpur
B) Tokyo
C) Bangkok
D) Manila
8. Who argued that profit is a payment for rental ability
A) Adam Smith
B) David Ricardo
C) Karl Marx
D) Alfred Marshall
9. The world economic crisis of which period is termed as the great depression
A) 1930 – 40
B) 1935 – 45
C) 1929 – 33
D) 1950 – 60
10. When did World Trade Organization (WTO) replace GATT
A) 1 January 1998
B) 1 January 1995
C) 1 January 1999
D) 1 June 2000
11. The IS curve is based on which of the following assumptions
A) There is only one interest rate and income level at which the product market can be in equilibrium
B) Stock market prices are generally high when interest rates are low
C) Investment and savings decisions vary inversely with income
D) Money market equilibrium can occur at any level of interest and income
12. The speculative demand for money is
A) Money balances held for purposes of near-future purchases
B) Money set aside to meet unexpected events
C) Money set aside to invest in the future
D) Money allocated for monthly expenses
13. The Keynesian multiplier concept reveals that
A) As the money supply increases, prices go up. if the economy is at full employment
B) An increase in saving is generally followed by an increase in the tale of interest
C) An increase in investment causes a decrease in income and employment
D) An increase in the general level of employment occurs with increased investment
14. Which of the following would not cause the Lm> curve to shift to the right
A) An expansion of the money supply by the treasury
B) The purchase of bonds by the federal reserve bank
C) A downward shift in the speculative demand for money
D) A change in the tale of interest
15. Which of the following is not true in an industry characterized by pure competition
A) There is cases of entry and exist
B) There are many buyers and sellers
C) The Marginal Revenue curve is horizontal
D) A single firm can influence the price
16. Nomic growth is a problem in an environment with high rates of interest because
A) The marginal efficiency of capital is less than the rate of interest
B) The price of Govt. bonds is relatively high
C) There is an excess supply of money
D) Short term demand curves for capital equipment shift to the right
17. Some economists argue that wage-price controls are useful because
A) These controls create Jobs for government workers
B) Such controls most properly allocate resources
C) Wage price control provides a permanent cure for inflation
D) Wage price controls increase productivity
18. The Loren curve shows that ……
A) The medium income in the US has consistently risen over time
B) Per capita income is increasing in the southeast
C) The degree of income equality (or inequality) within an economy at any point in time
D) The unemployment level does not affect all ethnic groups equally
19. Which of the following accounts for cost-push inflation
A) Increase in money supply
B) Increase in indirect taxation
C) Increase in population
D) Increase in non-plan expenditure
20. Fiscal deficit in the budget means
A) Revenue deficit plus the net borrowings of the govt.
B) Capital deficit plus revenue deficit
C) Budgetary deficit plus the net borrowing of the govt.
D) Primary deficit minus capital deficit
21. Forex Stands for ……
A) To examine
B) Foreign experts
C) Foreign Exports
D) Foreign Exchange
22. The Game Theory is concerned with
A) Perfect competition
B) Duopoly and oligopoly
C) Price discrimination
D) Imperfect competition
23. The prisoner’s dilemma was presented by A.W.Tuker in
A) 1930
B) 1960
C)1940
D) 1950
24 . According to Nurkse, the vicious circle of poverty can be broken by
A) Unbalance economic growth
B) Balance economic growth
C) Both A and B
D) None of these
25. Big push industrialization is relatively successful in
A) South Korea
B) The Soviet Union
C) China
D) North Korea
