| 1. |
Which of the following is NOT an economic theory of Ricardo's discussed in this article? |
| A. | Economic Rent |
| B. | Comparative Advantage |
| C. | Division of Labor |
| D. | All of the concepts listed can be contributed |
| Answer» C. Division of Labor | |
| 2. |
The concept Industrial Reserve Army is introduced by |
| A. | Turgot |
| B. | Karl Marx |
| C. | Joan Robinson |
| D. | J.S. Mill |
| Answer» B. Karl Marx | |
| 3. |
Who gives a welfare definition of economics? |
| A. | Adam Smith |
| B. | Alfred Marshall |
| C. | Lionel Robbins |
| D. | Paul Samuelson |
| Answer» B. Alfred Marshall | |
| 4. |
According to Ricardo, as an economy grows, the are the only group that would benefit. |
| A. | Workers |
| B. | Land-owners |
| C. | Businessmen |
| D. | None of the above |
| Answer» B. Land-owners | |
| 5. |
The type of equilibirium that deals with the determination of price and quantity of only one |
| A. | General equilibrium |
| B. | Partial equilibrium |
| C. | Zero Equilibrium |
| D. | Pareto efficiency |
| Answer» A. General equilibrium | |
| 6. |
Adam Smith begins with the Wealth of Nations with an example of a pin factory in order to |
| A. | the accumulation of capital |
| B. | the division of labor |
| C. | the perils of government |
| D. | All of the above |
| Answer» B. the division of labor | |
| 7. |
The Classical theory did not provide any coherent theory of ------ |
| A. | Income distribution |
| B. | Rent Thoery |
| C. | Labor value theory |
| D. | Profit |
| Answer» D. Profit | |
| 8. |
In Case the supply of a factor of production is fixed , its entire income will be ----- |
| A. | Economic Rent |
| B. | Marginal rent |
| C. | Rent |
| D. | Profit |
| Answer» A. Economic Rent | |
| 9. |
According to Adam Smith , employers earned profits due to ----------used by them |
| A. | Land |
| B. | Labor |
| C. | Capital |
| D. | Enterpreuer |
| Answer» C. Capital | |
| 10. |
According the law of diminishing returns: |
| A. | The marginal product of a variable factor |
| B. | Marginal utility falls as more units of a product are consumed |
| C. | The total product falls as more units of a variable factor |
| D. | The marginal product eventually increases as more |
| Answer» A. The marginal product of a variable factor | |
| 11. |
Communist Manifesto was authored by: |
| A. | Stalin |
| B. | Karl Marx |
| C. | Laski |
| D. | George Bernard Shah |
| Answer» B. Karl Marx | |
| 12. |
For the classical economists, the quantity theory of money provided an explanation of movements in the price level. Movements in the price level result |
| A. | solely from changes in the quantity of money |
| B. | primarily from changes in the quantity of money |
| C. | only partially from changes in the quantity of money |
| D. | from changes in factors other than the quantity of money |
| Answer» A. solely from changes in the quantity of money | |
| 13. |
The book Principles of Economics was published in the year |
| A. | 1776 |
| B. | 1932 |
| C. | 1890 |
| D. | 1936 |
| Answer» C. 1890 | |
| 14. |
The classical economists believed that if the quantity of money doubled, |
| A. | output would double. |
| B. | prices would fall |
| C. | prices would double |
| D. | prices would remain constant |
| Answer» C. prices would double | |
| 15. |
The main focus of Karl Marx's work was on which of the following social elements? |
| A. | The plight of the working class |
| B. | Economics of the upper class |
| C. | Worker\s conditions in factories |
| D. | Gender equality |
| Answer» C. Worker\s conditions in factories | |
| 16. |
Which two philosophers developed the principal concept of Marxism? |
| A. | Marx and Engels |
| B. | Marx and Aristotle |
| C. | Marx and Adam |
| D. | Plato and Aristotle |
| Answer» A. Marx and Engels | |
| 17. |
Walras’ law implies that if there are N markets, we only need to find equilibrium prices in |
| A. | N-1 markets. |
| B. | N-2 markets. |
| C. | all markets |
| D. | N-3 markets |
| Answer» A. N-1 markets. | |
| 18. |
The Fisher effect . |
| A. | States that nominal interest rates are equal to the real interest rates plus the expected inflation rate |
| B. | States that nominal interest rates are equal to real interest rates minus the expected inflation rate |
| C. | Predicts that as the expected inflation rate rises, so do nominal interest rates |
| D. | Predicts that as the expected inflation rate rises, real interest rates fall |
| Answer» C. Predicts that as the expected inflation rate rises, so do nominal interest rates | |
| 19. |
If you want a 4% real interest rate and the expected inflation rate is 3%, you should set the |
| A. | 1% |
| B. | 4% |
| C. | 7% |
| D. | 20% |
| Answer» C. 7% | |
| 20. |
The average number of times that a dollar is spent in buying the total amount of final goods and |
| A. | gross national product |
| B. | the spending multiplier |
| C. | the money multiplier. |
| D. | Velocity |
| Answer» D. Velocity | |
| 21. |
Adam Smith begins with the Wealth of Nations with an example of a pin factory in order to |
| A. | the accumulation of capital |
| B. | the division of labor |
| C. | the perils of government regulation |
| D. | All of the above |
| Answer» B. the division of labor | |
| 22. |
Ricardo Theory Of Rent is based on ------ reasoning |
| A. | Deductive |
| B. | Empirical |
| C. | illogical |
| D. | Inductive |
| Answer» A. Deductive | |
| 23. |
According to Ricardo, as an economy grows, the are the only group that would benefit. |
| A. | Workers |
| B. | Land-owners |
| C. | Bussiness Man |
| D. | None of the above |
| Answer» B. Land-owners | |
| 24. |
According the law of diminishing returns: |
| A. | The marginal product of a variable factor eventually falls as more units of it are added to a fixed factor |
| B. | Marginal utility falls as more units of a product are consumed |
| C. | The total product falls as more units of a variable factor are added to a fixed factor |
| D. | The marginal product eventually increases as more units of a variable factor are added to a fixed factor |
| Answer» A. The marginal product of a variable factor eventually falls as more units of it are added to a fixed factor | |
| 25. |
The quantity theory of money is expressed by the identity equation |
| A. | MV/PY |
| B. | MV=Y |
| C. | M= PYV |
| D. | MV=PY |
| Answer» D. MV=PY | |
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