70+ History of Economics Thought Solved MCQs

1.

The word economics derives from an early Greek term that means management of a:

A. business.
B. government.
C. househo
D. financial institution.
E. industry.
Answer» C. househo
2.

The cliché that “the punishment should fit the crime” originated in the writings of:

A. plato.
B. thomas aquinas.
C. jeremy bentham.
D. david hume.
E. thomas hobbes.
Answer» C. jeremy bentham.
3.

The notion that communism should be imposed on a nation’s rulers so that they would neither be tempted by possessions nor diverted from the task of wise governance was proposed by:

A. plato.
B. xenophon.
C. aristotle.
D. protagoras.
E. adam smith
Answer» A. plato.
4.

In his description of an idealized city-state, Plato did not advocate:

A. class-specialization.
B. self-regulation of markets.
C. fiat money to facilitate exchange.
D. that all philosopher king rulers embrace communist styles of living.
Answer» B. self-regulation of markets.
5.

The ancient Greek philosopher who tried to analyze isolated (one-on-one) exchange because markets with standardized products were relatively rare during his era was:

A. plato.
B. aristotle.
C. eucl
D. protagoras.
Answer» B. aristotle.
6.

Of the following, the thinkers who viewed markets most favorably and who would consequently have been least likely to condemn payments of interest as immoral or unjustified by productivity would have been:

A. richard cantillon and françois quesnay.
B. aristotle and plato.
C. thomas aquinas and albertus magnus.
D. ibn kaldur and abu hamid al-ghazali.
Answer» A. richard cantillon and françois quesnay.
7.

Medieval scholastics, early Islamic thinkers, and Aristotle all agreed that:

A. the accumulation of gold within a nation-state would eventually offset any trade surplus.
B. payments of interest [usury] should be prohibited.
C. commerce was modeled on a circular flow.
D. surpluses are enhanced through skilled management.
Answer» B. payments of interest [usury] should be prohibited.
8.

What early philosopher described this type of developmental cycle: people move from a rural, nomadic society with little economic surplus to an agricultural society with greater economic surplus and population growth?:

A. physiocrat quesnay who said the production from land created a surplus known as the net product.
B. non-western philosopher ibn khaldun.
C. non-western philosopher abu hamid al-ghazali.
D. thomas malthus, who came up with a theory on population.
Answer» B. non-western philosopher ibn khaldun.
9.

The concept of a “just price” that condemned market forces for yielding unjust results was developed in the writings of:

A. antoine augustin cournot.
B. fabius maximus.
C. karl marx.
D. demosthenes.
E. thomas aquinas.
Answer» B. fabius maximus.
10.

Nationalism, self-sufficiency, and imperial power were central concerns of:

A. french physiocrats.
B. thomas malthus.
C. mercantilists.
D. adam smith.
E. neoclassical economists.
Answer» C. mercantilists.
11.

Supernatural power, divinity, and gifts of nature are integral to the explanations of economic events developed by:

A. physiocrats.
B. german historicists.
C. modern monetarists.
D. mercantilists.
E. keynesians.
Answer» A. physiocrats.
12.

The French Physiocrats believed land was the only thing that could produce a net product, this net product was the surplus generated from land. Physiocrats concluded that a reasonable measure of a society’s net product is:

A. the number of houses built in one year.
B. land rent.
C. rent paid to landlords by people living in apartments.
D. the amount of taxes collected in one year.
Answer» B. land rent.
13.

Management of the economy via extensive regulations and laws specified by the national government is most consistent with:

A. syndicalism.
B. mercantilism.
C. communism, the next stage after a marxist “dictatorship of the proletariat.
D. classical liberalism.
Answer» B. mercantilism.
14.

The concept of _____ was illustrated by _____ with the quote, “The loss of a little finger would keep the average European from sleeping that night, ... but, provided he never saw them, he will snore with the most profound security over the loss of millions of his brethren.”

A. opportunity cost; john maurice clark
B. self interest; adam smith
C. scarcity; thorstein b. veblen
D. social security; george bush
Answer» B. self interest; adam smith
15.

The first comprehensive work on economics written in English was authored by Adam Smith in 1776 and entitled “An Inquiry into the Nature and Causes of the:

A. laws of supply and demand.”
B. wealth of nations.”
C. movements of prices in competition.”
D. incomes of different social classes.”
Answer» B. wealth of nations.”
16.

Adam Smith’s theory of economic growth relies upon a ________ to kick-start the process, and then _________ to continue it.

A. higher wages./ the wages fund.
B. division of labor/ higher wages.
C. explosive population growth / economies of scale.
D. division of labor / capital accumulation.
Answer» D. division of labor / capital accumulation.
17.

Social welfare is maximized when a “hedonistic calculus” regulates all human action according to the interventionist “liberal”:

A. john stuart mill.
B. thorstein veblen.
C. milton friedman.
D. jeremy bentham.
Answer» D. jeremy bentham.
18.

The theory that in equilibrium, workers’ wages will barely be adequate for biological needs is known as the:

A. labor theory of value.
B. convergence hypothesis.
C. subsistence theory of wages.
D. indicative planning model.
Answer» C. subsistence theory of wages.
19.

The Marxist theory of dialectical materialism theoretically follows a sequence:

A. synthesis  thesis  antithesis.
B. antithesis  synthesis  thesis.
C. thesis  antithesis  synthesis.
D. synthesis  antithesis  thesis.
Answer» C. thesis  antithesis  synthesis.
20.

According to Karl Marx, the properties that distinguish commodities do not include:

A. useful.
B. produced by human labor.
C. offered for sale in the market.
D. inseparable from the individual that produced them.
Answer» D. inseparable from the individual that produced them.
21.

The Marxist concept of surplus value would not include income received in the form of:

A. wages.
B. rent.
C. interest.
D. corporate profits.
E. proprietor profits.
Answer» A. wages.
22.

According to Karl Marx, revolution would inevitably come from the oppressed workers, known as the:

A. proletariat.
B. patricians.
C. bourgeoisie.
D. panacea.
E. petit bourgeoisie.
Answer» A. proletariat.
23.

Which of the following was a belief shared by utopian and scientific socialists?

A. the labor of the middle class determines the value of a product.
B. class struggle is the necessary means to achieve social change.
C. private property should be abolish
Answer» C. private property should be abolish
24.

Which of the following characteristics is least representative of socialism?

A. personal profits are derived through market competition
B. it includes private ownership of the means of production
C. it involves centralized decision making
D. it includes the pursuit of collective goals
Answer» A. personal profits are derived through market competition
25.

Who was the social theorist that proposed socialism should serve as an intermediate stage on the way to an ideal communist society

A. karl marx
B. william domhoff
C. erik wright
D. wright mills
Answer» A. karl marx
26.

Marginalism and the idea that pricing reflects marginal utility and demand was a movement away from:

A. the quantity theory of money.
B. thelabor theory of value.
C. mercantilism.
D. marx’s business cycle theory.
Answer» B. thelabor theory of value.
27.

Explicit treatments of marginal analysis were least central to the writings of:

A. william stanley jevons.
B. léon walras.
C. john stuart. mill.
D. carl menger.
Answer» C. john stuart. mill.
28.

The economist who spent twenty years cautiously trying out his ideas on his students before finally presenting them to the world near the close of the 19th century was: ]

A. william stanley jevons.
B. henry george.
C. léon walras.
D. alfred marshall
Answer» D. alfred marshall
29.

Alfred Marshall formalized and then popularized the analytical technique known as:

A. general equilibrium analysis
B. felicific calculus.
C. partial equilibrium analysis.
D. differential equations.
Answer» C. partial equilibrium analysis.
30.

Vilfredo Pareto’s very deductive mathematical models and proofs made the market seem quite mechanistic, an approach most notably rejected by his slightly older contemporary:

A. karl marx.
B. léon walras.
C. alfred marshall.
D. william stanley jevons.
Answer» C. alfred marshall.
31.

The economic theorist who most vociferously opposed using “all else assumed constant” [ceteris paribus] assumptions when building theory was:

A. karl marx.
B. alfred marshall.
C. thomas robert malthus .
D. léon walras.
Answer» D. léon walras.
32.

The Lausanne School is to Léon Walras as the Austrian School is to:

A. vilfredo pareto.
B. carl menger.
C. enrico barone.
D. david hume.
Answer» B. carl menger.
33.

The idea that governmental redistributions of income or wealth will ultimately have no effect on how disparate income and wealth are distributed is sometimes called:

A. say’s law of markets.
B. the law of comparative advantage.
C. keynes’ law.
D. pareto’s law.
Answer» D. pareto’s law.
34.

Which of the following is not among Rostow's stages of growth

A. the traditional society
B. the age of low mass consumption
C. the take-off
D. the drive to maturity
Answer» B. the age of low mass consumption
35.

Neoclassical economics views

A. natural resources as the primary factor determining economic success
B. nature as a source of raw materials and a sink for wastes
C. a steady-state as the ultimate economic goal
D. the relationship between supply and demand as having minor importance
Answer» B. nature as a source of raw materials and a sink for wastes
36.

Which of the following is the nucleus of the Keynesian theory of employment?

A. the theory of consumption function
B. the principle of effective demand
C. marginal efficiency of capital
D. none of these
Answer» B. the principle of effective demand
37.

The study of the effect of consumption on investment is called

A. accelerator
B. multiplier
C. leverage effect
D. none of these
Answer» A. accelerator
38.

Who among the following was the leader of Monetarism

A. keynes
B. milton friedman
C. a.w.philip
D. mankiv
Answer» B. milton friedman
39.

The multiplier is the reciprocal of

A. marginal propensity to save
B. marginal propensity to consume
C. both mpc and mps
D. none of the above
Answer» A. marginal propensity to save
40.

The mew classical economics is based on

A. market clearing
B. non-market clearing
C. both a and b
D. none of these
Answer» A. market clearing
41.

The welfare of all means:

A. swaraj
B. sarvodaya
C. brahmacharya
D. swadeshi
Answer» B. sarvodaya
42.

The desire of people to keep money with them is called by Keynes as:

A. investment
B. saving
C. liquidity preference
D. consumption
Answer» C. liquidity preference
43.

According to Keynes marginal efficiency of capital has a tendency to :

A. increase
B. decrease
C. remains constant
D. none of these
Answer» B. decrease
44.

The change in income as a result of change in is investment called by Keynes as:

A. multiplier
B. accelerator
C. marginal efficiency of capital
D. none of these
Answer» A. multiplier
45.

Marginal efficiency of capital is :

A. the expected rate of profit from new investment
B. the expected rate of profit from past investment
C. the expected rate of profit from saving
D. none of these.
Answer» A. the expected rate of profit from new investment
46.

Keynes theory of employment relates to:

A. the long run
B. short run
C. very long period
D. none of these
Answer» B. short run
47.

The two important determinants of investment according to Keynes are:

A. interest rate and marginal efficiency of capital
B. saving and interest rate
C. interest rate and consumption
D. none of these
Answer» A. interest rate and marginal efficiency of capital
48.

According to Keynes consumption is a function of :

A. income
B. saving
C. employment
D. none of these
Answer» A. income
49.

The author of the “End of Laissez faire” was.

A. keynes
B. friedman
C. laffer
D. j.b.say
Answer» A. keynes
50.

The author of ‘Arthashastra’ is

A. kautilya
B. bana bhatta
C. thiruvalluvar
D. kabir das
Answer» A. kautilya
51.

The Drain Theory is associated with the name of

A. kautilya
B. gandhiji
C. dadabhai naroji
D. ranade
Answer» C. dadabhai naroji
52.

Dadabhai Naroji attributed poverty of India to

A. over population
B. scarcity of capital
C. british rule
D. none of the above
Answer» C. british rule
53.

Dadabhai Noaroji attributed external drain to:

A. unrequired exports and no equivalent imports
B. unrequired imports and no equivalent exports
C. unrequired exports and equivalent imports
D. all the above
Answer» A. unrequired exports and no equivalent imports
54.

Ambedkar was a champion of

A. capitalism
B. socialism
C. mixed economy
D. state socialism
Answer» D. state socialism
55.

Ambedkar’s idea of state socialism is based on the unique blend of

A. marxism and buddhism
B. buddhism and gandhism
C. marxism and gandhism
D. all the above
Answer» A. marxism and buddhism
56.

The chief architect of Indi’s second five year Plan was:

A. gandhiji
B. harrod domar
C. p.c.mahalanobis
D. dadabai naoroji
Answer» C. p.c.mahalanobis
57.

Mahalanobis aimed at the economic development of India through

A. agricultural development
B. industrial development
C. both agricultural and industrial development
D. none of the above
Answer» B. industrial development
58.

The most important contribution of Mahalanobis is related to :

A. the design of large scale surveys
B. the design of a plan strategy
C. the starting of a journal
D. none of the above
Answer» A. the design of large scale surveys
59.

The wage good model was developed by

A. mahalanobis
B. naoroji
C. c.n.vakil and p.r.brahmananda
D. gandhiji
Answer» C. c.n.vakil and p.r.brahmananda
60.

V.K.R.V. Rao is remembered for his contribution on:

A. national income of india
B. deficit financing
C. capital formation
D. economic development
Answer» A. national income of india
61.

The formula adopted for distribution of Plan assistance during 4th and th Plan was:

A. gadgil formula
B. modified gadgil formula
C. mahalanobis formula
D. none of the above
Answer» A. gadgil formula
62.

The forword to India’s 1st Five Year Plan was written by:

A. v.k.r.v.rao
B. ambedkar
C. k.n.raj
D. c.n.vakil
Answer» C. k.n.raj
63.

Who among the following computed India’s balance of payment for the first time for Reserve Bank of India:

A. k.n.raj
B. c.n.vakil
C. p.r.brahmananda
D. ambedkar
Answer» C. p.r.brahmananda
64.

Amartya Sen was awarded Nobel Prize in Economics for his contribution to

A. welfare economicsand social choice theory
B. welfare economics and development economics
C. welfare economics and inequality
D. none of these
Answer» A. welfare economicsand social choice theory
65.

The world witnessed a great depression during –

A. 1929-33
B. 1939-43
C. 1919-23
D. 1911-16
Answer» A. 1929-33
66.

The most prominent representative of supply side economics was :

A. keynes
B. arthur laffer
C. richard hey
D. a.c. pigou
Answer» B. arthur laffer
67.

The ---- theory is associated with the name of Dadabai Naoroji.

A. demonstration
B. drain
C. surplus value
D. pocwery
Answer» B. drain
68.

Dadabai Naoroji attributed ----- of India to British rule.

A. independence
B. poverty
C. unemployment
D. mortality
Answer» B. poverty
69.

Ambedkar’s idea of ------ is based on a unique blend of Marxism and Budhism.

A. gandhism
B. state capitalism
C. anarchy
D. state socialism
Answer» D. state socialism
70.

------ is regarded as the chief architect of Indian constitution.

A. nehru
B. gandhi
C. ambedkar
D. rajagopalachari
Answer» C. ambedkar
Tags
Question and answers in History of Economics Thought, History of Economics Thought multiple choice questions and answers, History of Economics Thought Important MCQs, Solved MCQs for History of Economics Thought, History of Economics Thought MCQs with answers PDF download