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This set of Micro Economics 1 Multiple Choice Questions & Answers (MCQs) focuses on Micro Economics 1 Set 11
Q1 | The marginal propensity to save is defined as:
- 1-∆C/∆Y
- S/Y
- Y/S
- Y/∆S
Q2 | -------------is associated with the theory of multiplier:
- Adam Smith
- Malthus
- Malthus
- Keynes
Q3 | The MPC has a value:
- Greater than one but less than two
- Less than one but greater than zero
- Greater than two
- None of these
Q4 | Which of the following is not a stock variable:
- Vapital
- Wealth
- Money supply
- Saving
Q5 | An official reduction in the value of home currency in terms of foreign currency is known as:
- Revaluation
- Devaluation
- Depreciation
- Appreciation
Q6 | The value of investment multiplier depends on:
- APC
- APS
- MPC
- MPS
Q7 | Wage cut as a solution of unemployment in classical theory is suggested by:
- J
- Say B. A.C. Pigou
- Keynes
- Marshall
Q8 | The word macro was first used in Economics by:
- Keynes
- Ragner Frisch
- J.R. Hicks
- J.B. Say
Q9 | Personal Disposable income is:
- Always equal to personal income
- Always more than personal income
- Equal to personal income minus direct taxes
- Equal to personal income minus indirect taxes
Q10 | When the method of Statics is called upon to study a changing process, it is referred to as the method of:
- Statics
- Dynamics
- Comparative statics
- None of these
Q11 | In Classical theory of employment, there is the possibility of:
- No unemployment
- Voluntary unemployment
- Disguised unemployment
- Involuntary unemployment
Q12 | Leakages are the factors which:
- Keep the power of multiplier stable
- Increase the power of multiplier
- Reduce the power of multiplier
- Reduce the power multiplier to zero.
Q13 | The phenomenon of increase in money wages that leads to increases in unemployment is shown by:
- Speculative demand curve
- Phillip’s curve
- Aggregate supply
- Income consumption curve
Q14 | Which of the following is Keynesian saving function?
- S = f(i)
- S = f(P)
- S = f (Y)
- S = f (W)
Q15 | Usually an IS curve is a -------line.
- Vertical
- Downward Slopping
- Horizontal
- Upward slopping
Q16 | When consumption and income are equal, saving is ------------
- Negative
- Positive
- Zero
- Increasing
Q17 | When of the following is correct:
- 1/MPS = value of the multiplier
- 1/MPS = Accelerator co-efficient
- 1/MPS = MEC
- None of these
Q18 | “Treatise on money’ is a book written by:
- Pigou
- Marshall
- Robertson
- Keynes
Q19 | Value of money:
- Is inversely related to the price level
- Is directly related to the price level
- Is independent of the price level
- None of these
Q20 | The major primary function of money in modern Economics is to serve as:
- A store of value
- A medium of exchange
- A transfer of value
- A standard fordeferred payments
Q21 | 1- C/Y is defined as:
- Average propensity to consume
- Marginal propensity co consume
- Average propensity to save
- Marginal propensity to save
Q22 | The “General Theory” of Keynes was published in the year:
- 1936
- 1776
- 1930
- 1911
Q23 | Say’s Law of market says:
- Demand creates supply
- Supply creates demand
- Income generates demand
- Savings create demand in the market.
Q24 | The curve showing the possibilities of production of desired good is known as:
- Indifference curve
- Production possibility curve
- Revealed preference curve
- None of these
Q25 | Which one of the following definition of Economics is associated with the name of Lionel Robbins?
- Welfare definition
- Scarcity definition
- Growth definition
- Wealth definition