1. Which of the following is NOT an economic theory of Ricardo's discussed in this article?
Correct : C. Division of Labor
2. The concept Industrial Reserve Army is introduced by
Correct : B. Karl Marx
3. Who gives a welfare definition of economics?
Correct : B. Alfred Marshall
4. According to Ricardo, as an economy grows, the
are the only group that would benefit.
Correct : B. Land-owners
5. The type of equilibirium that deals with the determination of price and quantity of only one
Correct : A. General equilibrium
6. Adam Smith begins with the Wealth of Nations with an example of a pin factory in order to
Correct : B. the division of labor
7. The Classical theory did not provide any coherent theory of ------
Correct : D. Profit
8. In Case the supply of a factor of production is fixed , its entire income will be -----
Correct : A. Economic Rent
9. According to Adam Smith , employers earned profits due to ----------used by them
Correct : C. Capital
10. According the law of diminishing returns:
Correct : A. The marginal product of a variable factor
11. Communist Manifesto was authored by:
Correct : B. Karl Marx
12. For the classical economists, the quantity theory of money provided an explanation of movements in the price level. Movements in the price level result
Correct : A. solely from changes in the quantity of money
13. The book Principles of Economics was published in the year
Correct : C. 1890
14. The classical economists believed that if the quantity of money doubled,
Correct : C. prices would double
15. The main focus of Karl Marx's work was on which of the following social elements?
Correct : C. Worker\s conditions in factories
16. Which two philosophers developed the principal concept of Marxism?
Correct : A. Marx and Engels
17. Walras’ law implies that if there are N markets, we only need to find equilibrium prices in
Correct : A. N-1 markets.
18. The Fisher effect .
Correct : C. Predicts that as the expected inflation rate rises, so do nominal interest rates
19. If you want a 4% real interest rate and the expected inflation rate is 3%, you should set the
Correct : C. 7%
20. The average number of times that a dollar is spent in buying the total amount of final goods and
Correct : D. Velocity
21. Adam Smith begins with the Wealth of Nations with an example of a pin factory in order to
Correct : B. the division of labor
22. Ricardo Theory Of Rent is based on ------ reasoning
Correct : A. Deductive
23. According to Ricardo, as an economy grows, the
are the only group that would benefit.
Correct : B. Land-owners
24. According the law of diminishing returns:
Correct : A. The marginal product of a variable factor eventually falls as more units of it are added to a fixed factor
25. The quantity theory of money is expressed by the identity equation
Correct : D. MV=PY
26. Both sides of the quantity theory of money identity represent . *
Correct : C. Nominal GDP.
27. In the quantity theory of money, P and Y represent the price and quantity of:
Correct : D. all finished goods and services sold in an economy
28. Nominal GDP in terms of is represented by how much money there is and how many times it is spent, while Nominal GDP in terms of
is represented by all goods and services and their prices.
Correct : A. buyers & sellers
29. Say's law states that
Correct : D. supply creates its own demand
30. Adam Smith in his book, The Wealth of Nations, developed a theory about: