General Economics 1 Set 6

Bachelor of Arts in Political Science (BA Political Science),

Union Public Service Commission (UPSC),

Indian Administrative Service (IAS)

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This set of General Economics 1 Multiple Choice Questions & Answers (MCQs) focuses on General Economics 1 Set 6

Q1 | The term “Classical Economics” was first used by:
  • J.M. Keynes
  • Adam Smith
  • Karl Marx
  • David Ricardo
Answer: Karl Marx
Q2 | Who is the leader of the Classical school?
  • Thomas Robert Malthus
  • J.S. Mill
  • David Ricardo
  • Adam Smith.
Answer: Adam Smith.
Q3 | The core of classical economists is:
  • Effective Demand
  • Employment
  • Say’s Law of Market
  • Socialism
Answer: Say’s Law of Market
Q4 | ‘Law of Market’ is attributed to:
  • J.S. Mill
  • J.B. Say
  • Alfred marshall
  • A.C. Pigou
Answer: J.B. Say
Q5 | The Classicals adopted ---------policy:
  • Governmental policy
  • Laissez-faire
  • Policy of restriction
  • None of these
Answer: Laissez-faire
Q6 | According to Classicals, full employment is a:
  • Rare phenomenon
  • Normal phenomenon
  • Abnormal phenomenon
  • None of these
Answer: Normal phenomenon
Q7 | According to the Classical economists, general over production is:
  • Possible
  • Impossible
  • Both
  • None
Answer: Impossible
Q8 | According to the Classical economists, savings and investments are:
  • Always unequal
  • Always equal
  • Never equal
  • Sometimes equal
Answer: Always equal
Q9 | Wages and prices are ----------, according to the Classicals.
  • Rigid
  • Flexible
  • Both
  • All of these
Answer: Flexible
Q10 | Classical aggregate supply curve is:
  • Perfectly elastic
  • Perfectly inelastic
  • More elastic
  • Unitary elastic
Answer: Perfectly inelastic
Q11 | Pick the odd one from the following:
  • Law of Market
  • J.B. Say
  • Full employment
  • J.M. Keynes
Answer: J.M. Keynes
Q12 | According to the Classicals, investment is a function of:
  • Saving
  • Income
  • Employment
  • Rate of Interest
Answer: Rate of Interest
Q13 | “Supply creates its own demand” is called:
  • Law of supply
  • Law of market
  • Law of demand
  • Law of elasticity
Answer: Law of market
Q14 | Under the classical system, the equilibrium will be at:
  • Under employment
  • Full employment
  • Voluntary employment
  • Disguised unemployment
Answer: Full employment
Q15 | When savings exceeds the demand for savings, the rate of interest will:
  • Rise
  • Fall
  • Remain constant
  • None of these
Answer: Fall
Q16 | Rate of interest will increase when the demand for saving is:
  • Less than its supply
  • Equal to its supply
  • More than its supply
  • Less than or equal to its supply
Answer: More than its supply
Q17 | In the Classical system, the role of the government is:
  • The highest
  • Not at all needed
  • Limited
  • Important
Answer: Limited
Q18 | Equilibrium in the economy is settled by ---------, according to the Classicals.
  • Centralized planning
  • Price mechanism
  • Both the planning and price mechanism
  • None of these
Answer: Price mechanism
Q19 | Say’s Law of market was proved wrong by:
  • Industrial revolution
  • Great Depression
  • Green revolution
  • Gulf war
Answer: Great Depression
Q20 | Self interest, competition, profit motive are the features of:
  • Socialism
  • Capitalism
  • Marxism
  • Mixed economy
Answer: Capitalism
Q21 | The Great Depression was during:
  • 1930s
  • 1920s
  • 1940s
  • 1830s
Answer: 1930s
Q22 | 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
Q23 | Temporary unemployment is -------------, according to the Classical economists:
  • Impossible
  • Permanent
  • Possible
  • None of these
Answer: Possible
Q24 | J.B. Say was a ---------------Economist.
  • Swedish
  • German
  • French
  • Americal
Answer: French
Q25 | Pick the odd one out:
  • J
  • Say B. David Ricardo
  • Adam Smith
  • J.M. Keynes
Answer: J.M. Keynes
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