General Economics 1 Set 7

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 7

Q1 | Author of the book ‘The General Theory of Employment, Interest and Money’:
  • Karl Marxq
  • J.B. Say
  • J.M. Keynes
  • Adam Smith
Answer: J.M. Keynes
Q2 | ‘The General Theory’, was published in :
  • 1776
  • 1890
  • 1936
  • 1950
Answer: 1936
Q3 | The branch of Economics that deals with economic aggregate is called:
  • Micro Economics
  • Development economics
  • Macro Economics
  • Welfare economics
Answer: Macro Economics
Q4 | The central theme of Keynesian Theory is:
  • Laissez-faire
  • Free Trade
  • Effective demand
  • Self interest
Answer: Effective demand
Q5 | Who repudiated Say’s law of market?
  • J
  • Say B. David Ricardo
  • J.S. Mill
  • J.M. Keynes
Answer: J.M. Keynes
Q6 | 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
Q7 | The concept of effective demand is associated with the name of:
  • Marshall
  • Keynes
  • Krugman
  • Adam Smith
Answer: Keynes
Q8 | 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
Q9 | The proportion between incremental income and incremental consumption is called:
  • APC
  • APS
  • MPC
  • MPS
Answer: MPC
Q10 | The proportion between total income and total saving is called:
  • APC
  • APS
  • MPC
  • MPS
Answer: APS
Q11 | 1- MPC is called:
  • APC
  • APS
  • MPC
  • MPS
Answer: MPS
Q12 | APC + APS is equal to:
  • 0
  • >0
  • 1
  • <0
Answer: 1
Q13 | Multiplier is obtained by:
  • 1 - MPC
  • 1/1- MPS
  • 1/1- APC
  • 1/1-MPC
Answer: 1/1-MPC
Q14 | Exports minus imports is termed as:
  • Net income
  • Net imports
  • Net exports
  • National Income
Answer: Net exports
Q15 | As income increases consumption also increases, but:
  • Proportionately
  • More than proportionately
  • Less than proportionately
  • Equally
Answer: Less than proportionately
Q16 | 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
Q17 | Marginal efficiency of investment curve is:
  • Slopping downwards
  • Slopping upwards
  • Parallel to X axis
  • Parallel to Y axis
Answer: Slopping downwards
Q18 | According to Keynes, unemployment is due to:
  • Deficiency of capital
  • Deficiency of labour
  • Deficiency of education
  • Deficiency in effective demand
Answer: Deficiency in effective demand
Q19 | “In the long run, we are all dead”. Who said this?
  • Keynes
  • Adam Smith
  • Karl Marx
  • David Ricardo
Answer: Keynes
Q20 | According to Keynes, investment is a function of:
  • Rate of interest
  • Rate of profit
  • Rate of MEI
  • MEI and rate of interest
Answer: MEI and rate of interest
Q21 | Keynes believed in :
  • Full employment equilibrium
  • Under employment equilibrium
  • Both
  • None
Answer: Under employment equilibrium
Q22 | According to Keynes, wages and prices are:
  • Rigid
  • Flexible
  • Variable
  • Automatic
Answer: Rigid
Q23 | In Economics, 1930s is popularly known as the period of:
  • Great Battle
  • Great Depression
  • Industrial Revolution
  • Great Devide
Answer: Great Depression
Q24 | Keynesian aggregate supply curve is:
  • Perfectly elastic
  • Perfectly inelastic
  • Unitary elastic
  • Parabola
Answer: Perfectly elastic
Q25 | Keynes strongly argued for:
  • Free Trade
  • Non-intervention of Government
  • Laissez-faire
  • Governmental invervention
Answer: Governmental invervention
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