Basics Of Economics Set 7
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This set of Basics of Economics Multiple Choice Questions & Answers (MCQs) focuses on Basics Of Economics Set 7
Q1 | According to Keynes, unemployment is due to:
- deficiency of capital
- deficiency of labour
- deficiency of education
- deficiency in effective demand
Q2 | “In the long run, we are all dead”. Who said this?
- keynes
- adam smith
- karl marx
- david ricardo
Q3 | According to Keynes, investment is a function of:
- rate of interest
- rate of profit
- rate of mei
- mei and rate of interest
Q4 | Keynes believed in :
- full employment equilibrium
- under employment equilibrium
- both
- none
Q5 | According to Keynes, wages and prices are:
- rigid
- flexible
- variable
- automatic
Q6 | In Economics, 1930s is popularly known as the period of:
- great battle
- great depression
- industrial revolution
- great devide
Q7 | Keynes strongly argued for:
- free trade
- non-intervention of government
- laissez-faire
- governmental intervention
Q8 | Consumption expenditure directly varies with:
- savings
- investment
- disposable income
- rate of interest
Q9 | An important issue of macro economics is the determination of:
- consumption
- production
- utility
- income and employment
Q10 | Pick the odd one:
- aggregate demand
- effective demand
- j.m. keynes
- law of market
Q11 | Which of the following items does not include in the group?
- consumption
- investment
- rate of interest
- net exports
Q12 | If marginal propensity to consume is 0.8, the value of multiplier will be:
- 1
- 2.5
- 5
- 2
Q13 | Who is known as the father of Modern Economics?
- adam smith
- j.m.keynes
- robinson
- ricardo
Q14 | Goods without which people can not live are called:
- comforts
- luxuries
- necessaries
- none
Q15 | The problem of what to produce is a problem of:
- distribution
- technological choice
- consumption
- allocation of resources
Q16 | Those things that possess both utility and scarcity are called:
- economic goods
- free goods
- intermediate goods
- luxuries
Q17 | 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
Q18 | Goods produced for use in future productive process are called:
- intermediate goods
- final goods
- consumer goods
- capital goods
Q19 | In a horizontal straight line demand curve, the price elasticity ofdemand is:
- unity
- infinity
- zero
- less than one
Q20 | Who wrote the article Laws of Returns Under Competitive Conditions?
- joan robinson
- e.h. chamberlin
- a.c. pigou
- p. sraffa
Q21 | Increase in output less than proportional to increase in inputs iscalled:
- increasing returns
- constant returns
- diminishing returns
- marginal returns
Q22 | A simplified representation of a real situation is called:
- theory
- hypotheses
- evidence
- economic model
Q23 | When marginal product reaches its maximum, what can be said oftotal 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
Q24 | When a firm doubles its inputs and finds that its output has morethan doubled, this is known as:
- economies of scale.
- constant returns to scale.
- diseconomies of scale.
- a violation of the law of diminishing returns.
Q25 | When average product is at a maximum, marginal product is:
- zero
- increasing
- equal to average product
- greater than average product