McqMate
These multiple-choice questions (MCQs) are designed to enhance your knowledge and understanding in the following areas: Bachelor of Arts in Economics (BA Economics) .
| 251. |
The marginal propensity to save is defined as: |
| A. | 1-∆C/∆Y |
| B. | S/Y |
| C. | Y/S |
| D. | Y/∆S |
| Answer» A. 1-∆C/∆Y | |
| 252. |
-------------is associated with the theory of multiplier: |
| A. | Adam Smith |
| B. | Malthus |
| C. | Malthus |
| D. | Keynes |
| Answer» D. Keynes | |
| 253. |
The MPC has a value: |
| A. | Greater than one but less than two |
| B. | Less than one but greater than zero |
| C. | Greater than two |
| D. | None of these |
| Answer» B. Less than one but greater than zero | |
| 254. |
Which of the following is not a stock variable: |
| A. | Vapital |
| B. | Wealth |
| C. | Money supply |
| D. | Saving |
| Answer» D. Saving | |
| 255. |
An official reduction in the value of home currency in terms of foreign currency is known as: |
| A. | Revaluation |
| B. | Devaluation |
| C. | Depreciation |
| D. | Appreciation |
| Answer» B. Devaluation | |
| 256. |
The value of investment multiplier depends on: |
| A. | APC |
| B. | APS |
| C. | MPC |
| D. | MPS |
| Answer» C. MPC | |
| 257. |
Wage cut as a solution of unemployment in classical theory is suggested by: |
| A. | J |
| B. | Say B. A.C. Pigou |
| C. | Keynes |
| D. | Marshall |
| Answer» B. Say B. A.C. Pigou | |
| 258. |
The word macro was first used in Economics by: |
| A. | Keynes |
| B. | Ragner Frisch |
| C. | J.R. Hicks |
| D. | J.B. Say |
| Answer» B. Ragner Frisch | |
| 259. |
Personal Disposable income is: |
| A. | Always equal to personal income |
| B. | Always more than personal income |
| C. | Equal to personal income minus direct taxes |
| D. | Equal to personal income minus indirect taxes |
| Answer» C. Equal to personal income minus direct taxes | |
| 260. |
When the method of Statics is called upon to study a changing process, it is referred to as the method of: |
| A. | Statics |
| B. | Dynamics |
| C. | Comparative statics |
| D. | None of these |
| Answer» B. Dynamics | |
| 261. |
In Classical theory of employment, there is the possibility of: |
| A. | No unemployment |
| B. | Voluntary unemployment |
| C. | Disguised unemployment |
| D. | Involuntary unemployment |
| Answer» B. Voluntary unemployment | |
| 262. |
Leakages are the factors which: |
| A. | Keep the power of multiplier stable |
| B. | Increase the power of multiplier |
| C. | Reduce the power of multiplier |
| D. | Reduce the power multiplier to zero. |
| Answer» C. Reduce the power of multiplier | |
| 263. |
The phenomenon of increase in money wages that leads to increases in unemployment is shown by: |
| A. | Speculative demand curve |
| B. | Phillip’s curve |
| C. | Aggregate supply |
| D. | Income consumption curve |
| Answer» B. Phillip’s curve | |
| 264. |
Which of the following is Keynesian saving function? |
| A. | S = f(i) |
| B. | S = f(P) |
| C. | S = f (Y) |
| D. | S = f (W) |
| Answer» C. S = f (Y) | |
| 265. |
Usually an IS curve is a -------line. |
| A. | Vertical |
| B. | Downward Slopping |
| C. | Horizontal |
| D. | Upward slopping |
| Answer» B. Downward Slopping | |
| 266. |
When consumption and income are equal, saving is ------------ |
| A. | Negative |
| B. | Positive |
| C. | Zero |
| D. | Increasing |
| Answer» C. Zero | |
| 267. |
When of the following is correct: |
| A. | 1/MPS = value of the multiplier |
| B. | 1/MPS = Accelerator co-efficient |
| C. | 1/MPS = MEC |
| D. | None of these |
| Answer» A. 1/MPS = value of the multiplier | |
| 268. |
“Treatise on money’ is a book written by: |
| A. | Pigou |
| B. | Marshall |
| C. | Robertson |
| D. | Keynes |
| Answer» D. Keynes | |
| 269. |
Value of money: |
| A. | Is inversely related to the price level |
| B. | Is directly related to the price level |
| C. | Is independent of the price level |
| D. | None of these |
| Answer» A. Is inversely related to the price level | |
| 270. |
The major primary function of money in modern Economics is to serve as: |
| A. | A store of value |
| B. | A medium of exchange |
| C. | A transfer of value |
| D. | A standard fordeferred payments |
| Answer» B. A medium of exchange | |
| 271. |
1- C/Y is defined as: |
| A. | Average propensity to consume |
| B. | Marginal propensity co consume |
| C. | Average propensity to save |
| D. | Marginal propensity to save |
| Answer» C. Average propensity to save | |
| 272. |
The “General Theory” of Keynes was published in the year: |
| A. | 1936 |
| B. | 1776 |
| C. | 1930 |
| D. | 1911 |
| Answer» A. 1936 | |
| 273. |
Say’s Law of market says: |
| A. | Demand creates supply |
| B. | Supply creates demand |
| C. | Income generates demand |
| D. | Savings create demand in the market. |
| Answer» B. Supply creates demand | |
| 274. |
The curve showing the possibilities of production of desired good is known as: |
| A. | Indifference curve |
| B. | Production possibility curve |
| C. | Revealed preference curve |
| D. | None of these |
| Answer» B. Production possibility curve | |
| 275. |
Which one of the following definition of Economics is associated with the name of Lionel Robbins? |
| A. | Welfare definition |
| B. | Scarcity definition |
| C. | Growth definition |
| D. | Wealth definition |
| Answer» B. Scarcity definition | |
| 276. |
In a free enterprise economy, the problems of what, how and for whom to produce are solved by : |
| A. | A Planning Committee |
| B. | The Price mechanism |
| C. | The Planning Commission |
| D. | None of these. |
| Answer» B. The Price mechanism | |
| 277. |
Who considered Political Economy as “an enquiry into the nature and causes of the wealth of nations”? |
| A. | Adam Smith |
| B. | J.B.Say |
| C. | Marshall |
| D. | Keynes |
| Answer» A. Adam Smith | |
| 278. |
Which of the following definitions of Economics include the economic concept of ‘scales of Preferences’? |
| A. | Wealth definition |
| B. | Welfare definition |
| C. | Scarcity definition |
| D. | Growth definition |
| Answer» C. Scarcity definition | |
| 279. |
Which of the following embodies a more widely accepted definition of economics? |
| A. | Science of material welfare |
| B. | Science of wealth |
| C. | A study of mankind in the ordinary business of life |
| D. | Science of making choice. |
| Answer» D. Science of making choice. | |
| 280. |
The fundamental problem faced by an economy is one of : |
| A. | Exchange |
| B. | Decision making by the government |
| C. | Economic welfare |
| D. | Scarcity of resources and multiplicity of wants. |
| Answer» D. Scarcity of resources and multiplicity of wants. | |
| 281. |
Production possibilities curve does not show: |
| A. | What to produce |
| B. | How to produce |
| C. | For whom to produce |
| D. | Productive potential under conditions of underemployment |
| Answer» D. Productive potential under conditions of underemployment | |
| 282. |
State whether Economics is : |
| A. | A positive science only |
| B. | Neither a positive science |
| C. | A science but not art |
| D. | A science or an art depending on who uses Economics and for what |
| Answer» D. A science or an art depending on who uses Economics and for what | |
| 283. |
Who of the following emphasized the normative aspect of Economics as a science? |
| A. | The English classical school |
| B. | Lionel Robbins |
| C. | The German historical school |
| D. | None of these. |
| Answer» C. The German historical school | |
| 284. |
Of the following economists who is considered as master of partial analysis? |
| A. | Alfred Marshall |
| B. | A.C.Pigou |
| C. | J.M.Keynes |
| D. | J.S.Mill. |
| Answer» A. Alfred Marshall | |
| 285. |
Which of the following statements has been drawn by inductive method? |
| A. | A consumer will buy from the cheapest market |
| B. | All businessmen wish to buy at low price and sell at high price |
| C. | A private firm will try to maximize its profits |
| D. | The larger the stock of money with a person, the lower is the utility that he |
| Answer» B. All businessmen wish to buy at low price and sell at high price | |
| 286. |
What is true for deductive method? |
| A. | Abstract |
| B. | Realistic |
| C. | Economic conditions assumed to be changing |
| D. | Supported by historical school. |
| Answer» A. Abstract | |
| 287. |
What is true for inductive method? |
| A. | Hypothetical |
| B. | Empirical |
| C. | Ignores experimentation |
| D. | Static |
| Answer» B. Empirical | |
| 288. |
Find out the correct statement: |
| A. | Prediction of economic models cannot be refuted by empirical evidence |
| B. | Models transform verbal expressions in to more scientific expressions |
| C. | Models make no assumptions |
| D. | Economic models are comprehensive and not partial |
| Answer» B. Models transform verbal expressions in to more scientific expressions | |
| 289. |
Micro economic theory studies how a free enterprise economy determines: |
| A. | The Price of goods |
| B. | The price of services |
| C. | The price of resources |
| D. | All of these. |
| Answer» A. The Price of goods | |
| 290. |
Which aspect of taxation involves normative economics? |
| A. | The incidence of the tax |
| B. | The fairness of the tax |
| C. | The effect of the tax on incentives to work |
| D. | All of the above |
| Answer» B. The fairness of the tax | |
| 291. |
Microeconomics deals primarily with: |
| A. | Comparative statics, general equilibrium and positive economics |
| B. | Comparative statics, partial equilibrium and normative economics |
| C. | Dynamics, partial equilibrium and positive economics |
| D. | Comparative statics, partial equilibrium and positive economics. |
| Answer» D. Comparative statics, partial equilibrium and positive economics. | |
| 292. |
The word micro was first used in Economics by: |
| A. | Keynes |
| B. | Ragnar Frisch |
| C. | J.R.Hicks |
| D. | Marshall |
| Answer» B. Ragnar Frisch | |
| 293. |
A function refers to : |
| A. | The demand for a commodity |
| B. | The supply of a commodity |
| C. | The demand and supply of a commodity service or resource |
| D. | The relationship between one dependent variable and one or more |
| Answer» D. The relationship between one dependent variable and one or more | |
| 294. |
The validity of an economic theory is judged by its power to: |
| A. | Explain an economic phenomenon |
| B. | Predict the course of an economic phenomenon |
| C. | Prove or disprove a hypothesis |
| D. | Reveal the economic laws |
| Answer» A. Explain an economic phenomenon | |
| 295. |
The subject matter of economics is the study of: |
| A. | Wealth |
| B. | Welfare |
| C. | Scarcity |
| D. | Scarcity and Choice |
| Answer» D. Scarcity and Choice | |
| 296. |
To whom do you attribute the ‘growth’ definition of economics? |
| A. | Paul Samuelson |
| B. | Lionel Robbins |
| C. | Milton Friedman |
| D. | Alfred Marshall |
| Answer» A. Paul Samuelson | |
| 297. |
The first economist who coined the terms micro economics and macroeconomics |
| A. | Ragnar Frisch |
| B. | Keynes |
| C. | Marshall |
| D. | Friedman |
| Answer» A. Ragnar Frisch | |
| 298. |
Microeconomics deals with: |
| A. | The theory of factor pricing |
| B. | The theory of product pricing |
| C. | The theory of economic welfare |
| D. | All the above |
| Answer» D. All the above | |
| 299. |
Prof. Robbin’s definition of Economics is: |
| A. | Scarcity definition |
| B. | Growth definition |
| C. | Welath definition |
| D. | Welfare definition |
| Answer» A. Scarcity definition | |
| 300. |
A theory is: |
| A. | An assumption |
| B. | A validated hypothesis |
| C. | An ‘if then’ proposition |
| D. | A hypothesis |
| Answer» B. A validated hypothesis | |
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