McqMate
These multiple-choice questions (MCQs) are designed to enhance your knowledge and understanding in the following areas: Bachelor of Commerce (B Com) , Bachelor of Arts in Sociology (BA Sociology) , Union Public Service Commission (UPSC) , Indian Administrative Service (IAS) .
| 151. |
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 | |
| 152. |
“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 | |
| 153. |
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 | |
| 154. |
Keynes believed in : |
| A. | full employment equilibrium |
| B. | under employment equilibrium |
| C. | both |
| D. | none |
| Answer» B. under employment equilibrium | |
| 155. |
According to Keynes, wages and prices are: |
| A. | rigid |
| B. | flexible |
| C. | variable |
| D. | automatic |
| Answer» A. rigid | |
| 156. |
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 | |
| 157. |
Keynes strongly argued for: |
| A. | free trade |
| B. | non-intervention of government |
| C. | laissez-faire |
| D. | governmental intervention |
| Answer» D. governmental intervention | |
| 158. |
Consumption expenditure directly varies with: |
| A. | savings |
| B. | investment |
| C. | disposable income |
| D. | rate of interest |
| Answer» C. disposable income | |
| 159. |
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 | |
| 160. |
Pick the odd one: |
| A. | aggregate demand |
| B. | effective demand |
| C. | j.m. keynes |
| D. | law of market |
| Answer» D. law of market | |
| 161. |
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 | |
| 162. |
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 | |
| 163. |
Who is known as the father of Modern Economics? |
| A. | adam smith |
| B. | j.m.keynes |
| C. | robinson |
| D. | ricardo |
| Answer» A. adam smith | |
| 164. |
Goods without which people can not live are called: |
| A. | comforts |
| B. | luxuries |
| C. | necessaries |
| D. | none |
| Answer» C. necessaries | |
| 165. |
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 | |
| 166. |
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 | |
| 167. |
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 | |
| 168. |
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 | |
| 169. |
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 | |
| 170. |
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 | |
| 171. |
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 | |
| 172. |
A simplified representation of a real situation is called: |
| A. | theory |
| B. | hypotheses |
| C. | evidence |
| D. | economic model |
| Answer» D. economic model | |
| 173. |
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 | |
| 174. |
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. | |
| 175. |
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 | |
| 176. |
The want satisfying power of a commodity: |
| A. | satisfaction |
| B. | utility |
| C. | value |
| D. | marginal utility |
| Answer» B. utility | |
| 177. |
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 | |
| 178. |
Laws of return shows ---------production function. |
| A. | short-term |
| B. | medium term |
| C. | long term |
| D. | annual |
| Answer» A. short-term | |
| 179. |
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 | |
| 180. |
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 | |
| 181. |
Economic Laws are: |
| A. | statement of tendencies |
| B. | exact and predictable |
| C. | definite |
| D. | none |
| Answer» A. statement of tendencies | |
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