McqMate
These multiple-choice questions (MCQs) are designed to enhance your knowledge and understanding in the following areas: Bachelor of Arts in Politics (BA Politics) .
151. |
The branch of Economics that deals with economic aggregate is called: |
A. | Micro Economics |
B. | Development economics |
C. | Macro Economics |
D. | Welfare economics |
Answer» C. Macro Economics |
152. |
The central theme of Keynesian Theory is: |
A. | Laissez-faire |
B. | Free Trade |
C. | Effective demand |
D. | Self interest |
Answer» C. Effective demand |
153. |
Who repudiated Say’s law of market? |
A. | J.B. Say |
B. | David Ricardo |
C. | J.S. Mill |
D. | J.M. Keynes |
Answer» D. J.M. Keynes |
154. |
Effective demand is that demand when: |
A. | Aggregate demand is greater than aggregate supply |
B. | Aggregate demand is less than aggregate supply |
C. | Aggregate demand is equal to aggregate supply |
D. | All of these |
Answer» C. Aggregate demand is equal to aggregate supply |
155. |
The concept of effective demand is associated with the name of: |
A. | Marshall |
B. | Keynes |
C. | Krugman |
D. | Adam Smith |
Answer» B. Keynes |
156. |
The proportion between total income and total consumption is called: |
A. | Average propensity to consume |
B. | Average propensity to save |
C. | Marginal propensity to consume |
D. | Marginal propensity to save |
Answer» A. Average propensity to consume |
157. |
The proportion between incremental income and incremental consumption is called: |
A. | APC |
B. | APS |
C. | MPC |
D. | MPS |
Answer» C. MPC |
158. |
The proportion between total income and total saving is called: |
A. | APC |
B. | APS |
C. | MPC |
D. | MPS |
Answer» B. APS |
159. |
1- MPC is called: |
A. | APC |
B. | APS |
C. | MPC |
D. | MPS |
Answer» D. MPS |
160. |
APC + APS is equal to: |
A. | 0 |
B. | >0 |
C. | 1 |
D. | <0 |
Answer» C. 1 |
161. |
Multiplier is obtained by: |
A. | 1 – MPC |
B. | 1/1- MPS |
C. | 1/1- APC |
D. | 1/1-MPC |
Answer» D. 1/1-MPC |
162. |
Exports minus imports is termed as: |
A. | Net income |
B. | Net imports |
C. | Net exports |
D. | National Income |
Answer» C. Net exports |
163. |
As income increases consumption also increases, but: |
A. | Proportionately |
B. | More than proportionately |
C. | Less than proportionately |
D. | Equally |
Answer» C. Less than proportionately |
164. |
The expected return on investment is called: |
A. | Marginal propensity to save |
B. | Marginal propensity to consume |
C. | Marginal revenue |
D. | Marginal efficiency of investment |
Answer» D. Marginal efficiency of investment |
165. |
Marginal efficiency of investment curve is: |
A. | Slopping downwards |
B. | Slopping upwards |
C. | Parallel to X axis |
D. | Parallel to Y axis |
Answer» A. Slopping downwards |
166. |
According to Keynes, unemployment is due to: |
A. | Deficiency of capital |
B. | Deficiency of labour |
C. | Deficiency of education |
D. | Deficiency in effective demand |
Answer» D. Deficiency in effective demand |
167. |
“In the long run, we are all dead”. Who said this? |
A. | Keynes |
B. | Adam Smith |
C. | Karl Marx |
D. | David Ricardo |
Answer» A. Keynes |
168. |
According to Keynes, investment is a function of: |
A. | Rate of interest |
B. | Rate of profit |
C. | Rate of MEI |
D. | MEI and rate of interest |
Answer» D. MEI and rate of interest |
169. |
Keynes believed in : |
A. | Full employment equilibrium |
B. | Under employment equilibrium |
C. | Both |
D. | None |
Answer» B. Under employment equilibrium |
170. |
According to Keynes, wages and prices are: |
A. | Rigid |
B. | Flexible |
C. | Variable |
D. | Automatic |
Answer» A. Rigid |
171. |
In Economics, 1930s is popularly known as the period of: |
A. | Great Battle |
B. | Great Depression |
C. | Industrial Revolution |
D. | Great Devide |
Answer» B. Great Depression |
172. |
Keynesian aggregate supply curve is: |
A. | Perfectly elastic |
B. | Perfectly inelastic |
C. | Unitary elastic |
D. | Parabola |
Answer» A. Perfectly elastic |
173. |
Keynes strongly argued for: |
A. | Free Trade |
B. | Non-intervention of Government |
C. | Laissez-faire |
D. | Governmental intervention |
Answer» D. Governmental intervention |
174. |
Consumption expenditure directly varies with: |
A. | Savings |
B. | Investment |
C. | Disposable income |
D. | Rate of interest |
Answer» C. Disposable income |
175. |
An important issue of macro economics is the determination of: |
A. | Consumption |
B. | Production |
C. | Utility |
D. | Income and employment |
Answer» D. Income and employment |
176. |
Pick the odd one: |
A. | Aggregate demand |
B. | Effective demand |
C. | J.M. Keynes |
D. | Law of market |
Answer» D. Law of market |
177. |
Which of the following items does not include in the group? |
A. | Consumption |
B. | Investment |
C. | Rate of Interest |
D. | Net exports |
Answer» C. Rate of Interest |
178. |
If marginal propensity to consume is 0.8, the value of multiplier will be: |
A. | 1 |
B. | 2.5 |
C. | 5 |
D. | 2 |
Answer» C. 5 |
179. |
Who is known as the father of Modern Economics? |
A. | Adam Smith |
B. | J.M.Keynes |
C. | Robinson |
D. | Ricardo |
Answer» A. Adam Smith |
180. |
Goods without which people can not live are called: |
A. | Comforts |
B. | Luxuries |
C. | Necessaries |
D. | None |
Answer» C. Necessaries |
181. |
The problem of what to produce is a problem of: |
A. | Distribution |
B. | Technological choice |
C. | Consumption |
D. | Allocation of resources |
Answer» D. Allocation of resources |
182. |
Those things that possess both utility and scarcity are called: |
A. | Economic Goods |
B. | Free goods |
C. | Intermediate goods |
D. | Luxuries |
Answer» A. Economic Goods |
183. |
If a worker specializes in the production of a single good, it is called: |
A. | Product based division of labour |
B. | Process based division of labour |
C. | Worker based division of labour |
D. | None of these |
Answer» A. Product based division of labour |
184. |
Goods produced for use in future productive process are called: |
A. | Intermediate goods |
B. | Final goods |
C. | Consumer goods |
D. | Capital goods |
Answer» D. Capital goods |
185. |
In a horizontal straight line demand curve, the price elasticity of demand is: |
A. | Unity |
B. | Infinity |
C. | Zero |
D. | Less than one |
Answer» B. Infinity |
186. |
Who wrote the article Laws of Returns Under Competitive Conditions? |
A. | Joan Robinson |
B. | E.H. Chamberlin |
C. | A.C. Pigou |
D. | P. Sraffa |
Answer» D. P. Sraffa |
187. |
Increase in output less than proportional to increase in inputs is called: |
A. | Increasing returns |
B. | Constant returns |
C. | Diminishing returns |
D. | Marginal returns |
Answer» C. Diminishing returns |
188. |
A simplified representation of a real situation is called: |
A. | Theory |
B. | Hypotheses |
C. | Evidence |
D. | Economic Model |
Answer» D. Economic Model |
189. |
When marginal product reaches its maximum, what can be said of total product? |
A. | Total product must be at its maximum |
B. | Total product starts to decline even if marginal product is positive |
C. | Total product is increasing if marginal product is still positive |
D. | Total product levels off |
Answer» C. Total product is increasing if marginal product is still positive |
190. |
When a firm doubles its inputs and finds that its output has more than doubled, this is known as: |
A. | Economies of scale. |
B. | Constant returns to scale. |
C. | Diseconomies of scale. |
D. | A violation of the law of diminishing returns. |
Answer» A. Economies of scale. |
191. |
When average product is at a maximum, marginal product is: |
A. | Zero |
B. | Increasing |
C. | Equal to average product |
D. | Greater than average product |
Answer» C. Equal to average product |
192. |
The want satisfying power of a commodity: |
A. | Satisfaction |
B. | Utility |
C. | Value |
D. | Marginal Utility |
Answer» B. Utility |
193. |
Supply curve represents -------- relationship between quantity and price. |
A. | Direct |
B. | Inverse |
C. | Either direct or inverse |
D. | None of the above |
Answer» A. Direct |
194. |
Laws of return shows ---------production function. |
A. | Short-term |
B. | Medium term |
C. | Long term |
D. | Annual |
Answer» A. Short-term |
195. |
In classical theory the level of employment is a function of: |
A. | Price level |
B. | Money wage rate |
C. | Quantity of money |
D. | Real wage rate |
Answer» D. Real wage rate |
196. |
Consumption of capital good in the process of production is called as: |
A. | Capital Consumption |
B. | Depreciation |
C. | Decay of Capital |
D. | None of the above |
Answer» B. Depreciation |
197. |
Economic Laws are: |
A. | Statement of tendencies |
B. | Exact and predictable |
C. | Definite |
D. | None |
Answer» A. Statement of tendencies |
198. |
Returns to scale examines the production function in the: |
A. | Short-term |
B. | Medium term |
C. | Long term |
D. | Quinquinial |
Answer» C. Long term |
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