General Economics 1 Set 8
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This set of General Economics 1 Multiple Choice Questions & Answers (MCQs) focuses on General Economics 1 Set 8
Q1 | Consumption expenditure directly varies with:
- Savings
- Investment
- Disposable income
- Rate of interest
Q2 | An important issue of macro economics is the determination of:
- Consumption
- Production
- Utility
- Income and employment
Q3 | Pick the odd one:
- Aggregate demand
- Effective demand
- J.M. Keynes
- Law of market
Q4 | Which of the following items does not include in the group?
- Consumption
- Investment
- Rate of Interest
- Net exports
Q5 | If marginal propensity to consume is 0.8, the value of multiplier will be:
- 1
- 2.5
- 5
- 2
Q6 | Who is known as the father of Modern Economics?
- Adam Smith
- J.M.Keynes
- Robinson
- Ricardo
Q7 | Goods without which people can not live are called:
- Comforts
- Luxuries
- Necessaries
- None
Q8 | The problem of what to produce is a problem of:
- Distribution
- Technological choice
- Consumption
- Allocation of resources
Q9 | Those things that possess both utility and scarcity are called:
- Economic Goods
- Free goods
- Intermediate goods
- Luxuries
Q10 | If a worker specializes in the production of a single good, it is called:
- Product based division of labour
- Process based division of labour
- Worker based division of labour
- None of these
Q11 | Goods produced for use in future productive process are called:
- Intermediate goods
- Final goods
- Consumer goods
- Capital goods
Q12 | In a horizontal straight line demand curve, the price elasticity of demand is:
- Unity
- Infinity
- Zero
- Less than one
Q13 | Who wrote the article Laws of Returns Under Competitive Conditions?
- Joan Robinson
- E.H. Chamberlin
- A.C. Pigou
- P. Sraffa
Q14 | Increase in output less than proportional to increase in inputs is called:
- Increasing returns
- Constant returns
- Diminishing returns
- Marginal returns
Q15 | A simplified representation of a real situation is called:
- Theory
- Hypotheses
- Evidence
- Economic Model
Q16 | When marginal product reaches its maximum, what can be said of total product?
- Total product must be at its maximum
- Total product starts to decline even if marginal product is positive
- Total product is increasing if marginal product is still positive
- Total product levels off
Q17 | When a firm doubles its inputs and finds that its output has more than doubled, this is known as:
- Economies of scale.
- Constant returns to scale.
- Diseconomies of scale.
- A violation of the law of diminishing returns.
Q18 | When average product is at a maximum, marginal product is:
- Zero
- Increasing
- Equal to average product
- Greater than average product
Q19 | The want satisfying power of a commodity:
- Satisfaction
- Utility
- Value
- Marginal Utility
Q20 | Supply curve represents -------- relationship between quantity and price.
- Direct
- Inverse
- Either direct or inverse
- None of the above
Q21 | Laws of return shows ---------production function.
- Short-term
- Medium term
- Long term
- Annual
Q22 | In classical theory the level of employment is a function of:
- Price level
- Money wage rate
- Quantity of money
- Real wage rate
Q23 | Consumption of capital good in the process of production is called as:
- Capital Consumption
- Depreciation
- Decay of Capital
- None of the above
Q24 | Economic Laws are:
- Statement of tendencies
- Exact and predictable
- Definite
- None
Q25 | Returns to scale examines the production function in the:
- Short-term
- Medium term
- Long term
- Quinquinial