Basics Of Economics Set 6

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Bachelor of Arts in Sociology (BA Sociology ),

Union Public Service Commission (UPSC),

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This set of Basics of Economics Multiple Choice Questions & Answers (MCQs) focuses on Basics Of Economics Set 6

Q1 | In the Classical system, the role of the government is:
  • the highest
  • not at all needed
  • limited
  • important
Answer: limited
Q2 | Equilibrium in the economy is settled by ---------, according to theClassicals.
  • centralized planning
  • price mechanism
  • both the planning and price mechanism
  • none of these
Answer: price mechanism
Q3 | Self interest, competition, profit motive are the features of:
  • socialism
  • capitalism
  • marxism
  • mixed economy
Answer: capitalism
Q4 | The Great Depression was during:
  • 1930s
  • 1920s
  • 1940s
  • 1830s
Answer: 1930s
Q5 | The equilibrium price is determined by the forces of:
  • supply only
  • demand only
  • both demand and supply
  • none of these
Answer: both demand and supply
Q6 | Temporary unemployment is -------------, according to the Classicaleconomists:
  • impossible
  • permanent
  • possible
  • none of these
Answer: possible
Q7 | J.B. Say was a ---------------Economist.
  • swedish
  • german
  • french
  • american
Answer: french
Q8 | Pick the odd one out:
  • j.b. say
  • david ricardo
  • adam smith
  • j.m. keynes
Answer: j.m. keynes
Q9 | Author of the book ‘The General Theory of Employment, Interest andMoney’:
  • karl marxq
  • j.b. say
  • j.m. keynes
  • adam smith
Answer: j.m. keynes
Q10 | ‘The General Theory’, was published in :
  • 1776
  • 1890
  • 1936
  • 1950
Answer: 1936
Q11 | The branch of Economics that deals with economic aggregate is called:
  • micro economics
  • development economics
  • macro economics
  • welfare economics
Answer: macro economics
Q12 | The central theme of Keynesian Theory is:
  • laissez-faire
  • free trade
  • effective demand
  • self interest
Answer: effective demand
Q13 | Who repudiated Say’s law of market?
  • j.b. say
  • david ricardo
  • j.s. mill
  • j.m. keynes
Answer: j.m. keynes
Q14 | Effective demand is that demand when:
  • aggregate demand is greater than aggregate supply
  • aggregate demand is less than aggregate supply
  • aggregate demand is equal to aggregate supply
  • all of these
Answer: aggregate demand is equal to aggregate supply
Q15 | The concept of effective demand is associated with the name of:
  • marshall
  • keynes
  • krugman
  • adam smith
Answer: keynes
Q16 | The proportion between total income and total consumption is called:
  • average propensity to consume
  • average propensity to save
  • marginal propensity to consume
  • marginal propensity to save
Answer: average propensity to consume
Q17 | The proportion between incremental income and incrementalconsumption is called:
  • apc
  • aps
  • mpc
  • mps
Answer: mpc
Q18 | The proportion between total income and total saving is called:
  • apc
  • aps
  • mpc
  • mps
Answer: aps
Q19 | 1- MPC is called:
  • apc
  • aps
  • mpc
  • mps
Answer: mps
Q20 | APC + APS is equal to:
  • 0
  • >0
  • 1
  • <0
Answer: 1
Q21 | Multiplier is obtained by:
  • 1 – mpc
  • 1/1- mps
  • 1/1- apc
  • 1/1-mpc
Answer: 1/1-mpc
Q22 | Exports minus imports is termed as:
  • net income
  • net imports
  • net exports
  • national income
Answer: net exports
Q23 | As income increases consumption also increases, but:
  • proportionately
  • more than proportionately
  • less than proportionately
  • equally
Answer: less than proportionately
Q24 | The expected return on investment is called:
  • marginal propensity to save
  • marginal propensity to consume
  • marginal revenue
  • marginal efficiency of investment
Answer: marginal efficiency of investment
Q25 | Marginal efficiency of investment curve is:
  • slopping downwards
  • slopping upwards
  • parallel to x axis
  • parallel to y axis
Answer: slopping downwards
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