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This set of Macro Economics 1 Multiple Choice Questions & Answers (MCQs) focuses on Macro Economics 1 Set 6
Q1 | Adam Smith, the father of modern economic theory, defined economics as a subject,which is mainly concerned with the study of nature and causes of generation of
- wealth
- welfare
- hipness
- scarcity
Q2 | introduced the concept of welfare in the study of economics:
- fischer
- alfred marshall
- j s mill
- adam smith
Q3 | Who defined economics as: a science which studies human behavior as a relationshipbetween ends and scarce means which have alternative uses:
- j b say
- alfred marshall
- david ricardo
- robbins
Q4 | The problem of scarcity and choice making can be depicted using the tool of curve.
- demand
- isoquant
- indifference
- production possibility
Q5 | Macroeconomicsis primarily concerned with aggregates. Which of the following is nota macroeconomic aggregate?
- decision making by a household
- the unemployment rate, and inflation levels
- national income
- the supply of money
Q6 | Scientific attempts to describe economic relationships are :
- factual and can never be wrong
- accurate ways to predict political viewpoints
- known as positive economics
- directed at the fairness of social programs
Q7 | The method consistsin deriving conclusionsfrom general truths, takesfewgeneral principles and applies them draw conclusions.
- inductive
- deductive
- empirical
- scientific
Q8 | is a term referring to an intellectual controversy over epistemology, researchmethodology between Carl Menger, and Gustav von Schmoller.
- methodenstreit
- laissez-faire
- cetris paribus
- quid proquo
Q9 | Inductive method which also called empirical method was adopted by the:
- marginalist school
- mercantilists
- physiocrats
- historical school of economists
Q10 | Decisions made in households, firms, and government are the focus of:
- positive economic
- microeconomics
- normative economics
- macroeconomics
Q11 | Knowledge used to combine resources productively is called:
- comparative advantage
- capitalism
- entrepreneurship
- technology
Q12 | Economic efficiency for the entire economy requires that :
- potential gains to anyone necessitate losses to another
- all goods be produced at their lowest possible opportunity costs
- maximum-valued output is obtained from given resource
- all of the above
Q13 | Theories are:
- much more complicated than common sense
- scientific only if based on normative value judgments
- proven if only a few unimportant exceptions exist
- developed when we collect data, try to explain how things work, and then
Q14 | Division of Labour is limited by the extent of:
- supply
- demand
- price
- market
Q15 | Milton Friedman restated the :
- labour theory
- profit theory
- quantity theory of money
- wage theory
Q16 | If the value of a variable varies as a consequence of the variation in the value of someother variable, it is called:
- exogenous variable
- endogenours v ariable
- stock
- flow
Q17 | Saving is a function of:
- export
- investment
- improvement in productivity
- income
Q18 | In the classical theory the equlity between saving and investment is brought about by:
- income
- rate interest
- consumption
- none ofthese
Q19 | Economic Laws are:
- statement of tendencies
- exact and predictable
- definite
- none
Q20 | Which of the following concepts are most closely associated with J.M. Keynes?
- control of the money supply
- marginal utility theory
- indifference curve analysis
- marginal efficiency of capital
Q21 | Which of the following is an example of economic overhead?
- schools
- roads and railwlays
- sanitary facilities
- hospitals