200+ General Economics 1 Solved MCQs

These multiple-choice questions (MCQs) are designed to enhance your knowledge and understanding in the following areas: Bachelor of Arts in Political Science (BA political science) , Union Public Service Commission (UPSC) , Indian Administrative Service (IAS) .

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151.	Author of the book ‘The General Theory of Employment, Interest and Money’:
A.	Karl Marxq
B.	J.B. Say
C.	J.M. Keynes
D.	Adam Smith
Answer» C. J.M. Keynes

152.	‘The General Theory’, was published in :
A.	1776
B.	1890
C.	1936
D.	1950
Answer» C. 1936

153.	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

154.	The central theme of Keynesian Theory is:
A.	Laissez-faire
B.	Free Trade
C.	Effective demand
D.	Self interest
Answer» C. Effective demand

155.	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

156.	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

157.	The concept of effective demand is associated with the name of:
A.	Marshall
B.	Keynes
C.	Krugman
D.	Adam Smith
Answer» B. Keynes

158.	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

159.	The proportion between incremental income and incremental consumption is called:
A.	APC
B.	APS
C.	MPC
D.	MPS
Answer» C. MPC

160.	The proportion between total income and total saving is called:
A.	APC
B.	APS
C.	MPC
D.	MPS
Answer» B. APS

163.	Multiplier is obtained by:
A.	1 - MPC
B.	1/1- MPS
C.	1/1- APC
D.	1/1-MPC
Answer» D. 1/1-MPC

164.	Exports minus imports is termed as:
A.	Net income
B.	Net imports
C.	Net exports
D.	National Income
Answer» C. Net exports

165.	As income increases consumption also increases, but:
A.	Proportionately
B.	More than proportionately
C.	Less than proportionately
D.	Equally
Answer» C. Less than proportionately

167.	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

168.	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

166.	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

169.	“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

170.	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

171.	Keynes believed in :
A.	Full employment equilibrium
B.	Under employment equilibrium
C.	Both
D.	None
Answer» B. Under employment equilibrium

172.	According to Keynes, wages and prices are:
A.	Rigid
B.	Flexible
C.	Variable
D.	Automatic
Answer» A. Rigid

173.	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

174.	Keynesian aggregate supply curve is:
A.	Perfectly elastic
B.	Perfectly inelastic
C.	Unitary elastic
D.	Parabola
Answer» A. Perfectly elastic

175.	Keynes strongly argued for:
A.	Free Trade
B.	Non-intervention of Government
C.	Laissez-faire
D.	Governmental invervention
Answer» D. Governmental invervention

176.	Consumption expenditure directly varies with:
A.	Savings
B.	Investment
C.	Disposable income
D.	Rate of interest
Answer» C. Disposable income

177.	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

200+ General Economics 1 Solved MCQs

Author of the book ‘The General Theory of Employment, Interest and Money’:

‘The General Theory’, was published in :

The branch of Economics that deals with economic aggregate is called:

The central theme of Keynesian Theory is:

Who repudiated Say’s law of market?

Effective demand is that demand when:

The concept of effective demand is associated with the name of:

The proportion between total income and total consumption is called:

The proportion between incremental income and incremental consumption is called:

The proportion between total income and total saving is called:

1- MPC is called:

APC + APS is equal to:

Multiplier is obtained by:

Exports minus imports is termed as:

As income increases consumption also increases, but:

The expected return on investment is called:

Marginal efficiency of investment curve is:

According to Keynes, unemployment is due to:

“In the long run, we are all dead”. Who said this?

According to Keynes, investment is a function of:

Keynes believed in :

According to Keynes, wages and prices are:

In Economics, 1930s is popularly known as the period of:

Keynesian aggregate supply curve is:

Keynes strongly argued for:

Consumption expenditure directly varies with:

An important issue of macro economics is the determination of:

Pick the odd one:

Which of the following items does not include in the group?

If marginal propensity to consume is 0.8, the value of multiplier will be:

Who is known as the father of Modern Economics?

Goods without which people can not live are called:

The problem of what to produce is a problem of:

Those things that possess both utility and scarcity are called:

If a worker specializes in the production of a single good, it is called:

Goods produced for use in future productive process are called:

In a horizontal straight line demand curve, the price elasticity of demand is:

Who wrote the article Laws of Returns Under Competitive Conditions?

Increase in output less than proportional to increase in inputs is called:

A simplified representation of a real situation is called:

When marginal product reaches its maximum, what can be said of total product?

When a firm doubles its inputs and finds that its output has more than doubled, this is known as:

When average product is at a maximum, marginal product is:

The want satisfying power of a commodity:

Supply curve represents -------- relationship between quantity and price.

Laws of return shows ---------production function.

In classical theory the level of employment is a function of:

Consumption of capital good in the process of production is called as:

Economic Laws are:

Returns to scale examines the production function in the:

178.	Pick the odd one:
A.	Aggregate demand
B.	Effective demand
C.	J.M. Keynes
D.	Law of market
Answer» D. Law of market

179.	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

180.	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

181.	Who is known as the father of Modern Economics?
A.	Adam Smith
B.	J.M.Keynes
C.	Robinson
D.	Ricardo
Answer» A. Adam Smith

182.	Goods without which people can not live are called:
A.	Comforts
B.	Luxuries
C.	Necessaries
D.	None
Answer» C. Necessaries

183.	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

184.	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

185.	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

186.	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

187.	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