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Federal Public Service Commission FPSC Lecturer Economics Mcqs for Written Test Preparation

By administrator - Last updated: Tuesday, January 21, 2014 - Save & Share - 16 Comments

Federal Public Service Commission FPSC  Lecturer Economics Mcqs for Written Test Preparation  

FPSC  Lecturer Economics Mcqs for Written Test Preparation  

1. The largest source of tax revenue for the federal government is:
a. the personal income tax
b. the social security tax
c. the property tax
d. the sales tax

2. When my income was $100,000, I paid $10,000 in taxes. When my income became $200,000, I paid $40,000 in taxes. My marginal tax rate is:
a. 10%
b. 20%
c. 30%
d. 40%

3. The tax is question #2 is:
a. progressive
b. regressive
c. proportional

4. Which of the following taxes is regressive?
a. the federal income tax
b. the state income tax
c. the sales tax
d. the Medicare tax

5. Assume that there are two goods, A and B. In 1996, Americans produced 10 units of A at a price of $10 and 20 units of B at a price of $20. In 2002, Americans produced 20 units of A at a price of $20 and 30 units of B at a price of $30. The Nominal GDP for 2002 is:
a. $100
b. $400
c. $500
d. $900
e. $1300

6. Using the numbers in question 5, the Real GDP for 2002 is:
a. $400 b. $500 c. $800 d. $900 e. $1,300

7. Which of the following statements is/are true?
a. Business Investment Spending occurs when individuals buy stock in the stock market
b. Productivity is the United States grew very slowly between 1973 and 1996
c. Because of discouraged workers, the official unemployment rate is too high
d. “Full employment” occurs when there is no frictional unemployment

8. Immediately after a trough, we would expect to have a/an
a. peak
b. recession
c. recovery
d. another trough

9. Last week, Martha spent one day cleaning a house. For this, she was paid $50. The rest of the week, she spent looking for a job. Martha would be classified as
a. employed
b. unemployed
c. not in the labor force

10. John lost his accounting job when Montgomery Wards closed its stores in San Diego. He looked for a similar job for ten months before finding an accounting job at Sears. During the month John was unemployed, he was
a. frictionally unemployed
b. seasonally unemployed
c. cyclically unemployed
d. structurally unemployed

Answers: A C A C E C B C A D


1. Which of the following IS a function of money?
a. medium of exchange
b. store of value
c. unit of accounting
d. all of the above

2. Which of the following is a component of M-1?
a. savings deposits
b. credit card
c. checkable deposits
d. gold

3. Which of the following is a NOT component of M-2?
a. small time deposits
b. money market mutual funds
c. stocks
d. checkable deposits

4. Which of the following is true about the Federal Reserve System (Fed)?
a. it is a system of 12 central banks
b. its Board of Governors is elected by a vote of the people
c. its main policy-making body is the FDIC
d. it accepts deposits from the public and makes loans to businesses
e. all of the above

5. An IOU of the Federal Reserve Bank of San Francisco to Bank of America is called:
a. discounts
b. federal funds
c. reserves
d. collateral

6. Which of the following is the most liquid?
a. a savings account
b. a 6 month CD
c. a home
d. water

7. The monetary base is composed of:
a. gold and silver
b. currency only
c. currency and reserves
d. currency and checkable deposits

8. If the monetary base is increased by $1,000 and the reserve requirement is 10% (1/10), by how much will the money supply be increased?
a. $100
b. $1,000
c. $5,000
d. $10,000

9. If the Federal Reserve wishes to increase the money supply, it should:
a. raise the reserve requirement
b. raise the discount rate
c. buy Treasury securities in the open market
d. all of the above

10. An increase in the money supply will cause interest rates to
a. rise
b. fall
c. remain unchanged

Answers: D C C A C A C D C B


16 Responses to “Federal Public Service Commission FPSC Lecturer Economics Mcqs for Written Test Preparation”

Comment from saima zahid
Time January 22, 2014 at 8:59 am

please send me suggested books for fpsc test.i have applied for lecturer of economics.i need more info.

Time January 22, 2014 at 7:22 pm

I think no particular books available for this’s conceptual test………!

Time January 22, 2014 at 7:22 pm

I think no particular books available for this’s conceptual test………!

Comment from arslan gohar
Time January 25, 2014 at 8:20 am

aoa madam I have also applied if u have any study material kindly snd me

Comment from huma
Time January 26, 2014 at 2:36 pm

o hello meny b apply kia hua hhai. koi material mjy b send kr daina

Comment from sobia siddiqui
Time January 27, 2014 at 4:09 am

Assalamoalaykum, i want to ask about the test date that either it ll be in feb. or march? plz. tell me about the course and recom. books for preparation,thanks.

Comment from Shahida
Time February 11, 2014 at 1:57 pm

Plz tel m any stdy matirial

Comment from shakeel butt
Time February 13, 2014 at 7:24 pm

Please tell me about the test date Plzzzzzzzzzzzzzzzzzzzz

Comment from tehmina
Time February 24, 2014 at 7:37 am

Test date kya h economics female ki….

Comment from Shagufta Noreen
Time March 1, 2014 at 4:59 pm

Plzzzzzzzzzzzzzzzz tell me the test date n material for preparation.

Comment from iffat sehar
Time March 3, 2014 at 3:54 pm

plz tel me when eco fmale test is going to b held..test prepration kliey koe special book.plzzz inform any1

Comment from Naveed Khan
Time March 5, 2014 at 3:29 pm

Dear Friends Muhammad Asif Malik ne aik book likha hai “OBJECTIVE ECONOMICS” s ko study karlay MCQS hai.

Comment from doni
Time March 6, 2014 at 6:05 pm

kindly share material for preparation………………..

Comment from Faizan
Time March 18, 2014 at 1:57 pm

Go through the inter and graduation economics books. for english vacab use barron’s g r e book

Comment from qamar
Time March 21, 2014 at 6:30 am

lecturer of economic plz date bata da kis din test hy ap ke side pr koi aye si ja ga nhe mil rahi hy jha ma check kar sakoo

Comment from zainab rana
Time April 17, 2014 at 7:02 am

its useful but at least there should b 100 MCQ’S anyway if any 1 knows bout any other web site abut such kind v study material kindly share the link

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