SPSC Lecturer Economics Past Paper 2024

The aggregate demand curve slopes downward because of the?

1. Wealth effect
2. Interest rate effect
3. Exchange rate effect
4. All of these

Frictional unemployment often occurs when?

1. The economy enters a recession
2. People first enter the labor force
3. People are discriminated against
4. People lose a jobs because their skills are no longer needed

A company has a cost function C(Q) = 2 Q^2 + 10Q + 50. What is the marginal cost of producing the 5the one of output?

1. $20
2. $30
3. $40
4. $50

What is the Antonym of “Ubiquitous”?

1. Universal
2. Abundant
3. Pervasive
4. Scarce

If the demand function for good X is given by X^D = 1500-1.3P,-1.8P + 2M then we know that?

1. Own price elasticity is -1.3
2. Goods X and Y are substitutes for each other
3. Goods X and Y are complements to each other
4. The income Elasticity of X is -2
5. Both A and D

All profit-maximizing firms will hire more labor up to the point where the

1. The average physical product of labour equals the nominal wage
2. The last unit of labour adds equally to total revenue and total cost
3. The marginal product of Labour is at its maximum value
4. The value of output most greatly exceeds labour's marginal factor cost

A purely competitive firm will produce where P = MC because of this?

1. Is good for society
2. Is all that is permitted by law
3. Maximizes profits
4. Allows price adjustment but not quantity adjustment

What does the term "lender of last resort" refer to in the context of central banking?

1. A bank providing loans to commercial banks during times of financial crisis
2. A Commercial bank providing loans to the central bank
3. A government agency providing loans to individuals and businesses
4. A central bank offering loans to foreign governments

The difference between the Gross value added and Net value added is?

1. Investment
2. Value added
3. Production flow
4. Depreciation

The term "crowding out" refers to?

1. The decrease in private investment that occurs when government borrowing increases
2. The increase in private investment that occurs when government borrowing decreases
3. The decrease in government spending that occurs when private investment increases
4. The increase in government spending that occurs when private investment decreases