SPSC Lecturer Economics Past Paper 2024

The period of the business cycle in which read GDP is increasing is called the?

1. Expansion
2. Peak
3. Recession
4. Trough

If the household consumes along the budget constraint where MUx/Px > MUy/Py then assuming normal preferences, we are sure that?

1. Price of X is greater than price of Y
2. MUx > MUy
3. The household could increase his total utility by consuming more of X and less of Y
4. The household could increase his total utility by consuming less of X and more of Y
5. Household is not spending all his income

Inferior goods are the goods which?

1. Have zero income elasticity
2. Have negative income elasticity
3. Have less than one but greater than zero Income elasticity
4. People have no preference of consuming
5. Have positively sloped indifference curves

In monopolistic competition, product differentiation refers to?

1. Offering products that are similar but not identical
2. Offering identical products to consumers
3. Offering unique products with no substitutes
4. Offering products at the same price as competitors

In production theory, the short run is a period?

1. Generally less than three years
2. Sufficient to adopt new technology
3. During which at least one resource is fixed
4. When only labour can be varied

Which of the following could cause the aggregate demand curve to shift to the left?

1. An increase in the money supply
2. Contractionary demand management policies
3. Expansionary demand management policies
4. An increase in government spending
5. There is more than one correct answer here

What is the correct formula for GDP Deflator?

1. Nominal GDP - (minus) Real GDP
2. Nominal GDP + Real GDP
3. Nominal GDP / Real GDP
4. Real GDP / Nominal GDP

The Solow Growth Model predicts that?

1. Rich nations will grow faster than poor nations
2. The rich will get richer and the poor will get poorer
3. The rich will get poorer and the poor will get richer
4. Poor nations will grow faster than rich nations

Theory of comparative advantage was presented by?

1. Adam Smith
2. David Ricardo
3. Ohlin
4. Hicks

The standard deviation of a data set tells us?

1. The average distance from the mean
2. The exact values in the data set
3. The highest and lowest values
4. How many data points there are