1. The word economics derives from an early Greek term that means management of a:
Correct : C. househo
2. The cliché that “the punishment should fit the crime” originated in the writings of:
Correct : C. jeremy bentham.
3. The notion that communism should be imposed on a nation’s rulers so that they would neither be tempted by possessions nor diverted from the task of wise governance was
proposed by:
Correct : A. plato.
4. In his description of an idealized city-state, Plato did not advocate:
Correct : B. self-regulation of markets.
5. The ancient Greek philosopher who tried to analyze isolated (one-on-one) exchange because markets with standardized products were relatively rare during his era was:
Correct : B. aristotle.
6. Of the following, the thinkers who viewed markets most favorably and who would consequently have been least likely to condemn payments of interest as immoral or
unjustified by productivity would have been:
Correct : A. richard cantillon and françois quesnay.
7. Medieval scholastics, early Islamic thinkers, and Aristotle all agreed that:
Correct : B. payments of interest [usury] should be prohibited.
8. What early philosopher described this type of developmental cycle: people move from a rural, nomadic society with little economic surplus to an agricultural society with greater economic surplus and population growth?:
Correct : B. non-western philosopher ibn khaldun.
9. The concept of a “just price” that condemned market forces for yielding unjust results was developed in the writings of:
Correct : B. fabius maximus.
10. Nationalism, self-sufficiency, and imperial power were central concerns of:
Correct : C. mercantilists.
11. Supernatural power, divinity, and gifts of nature are integral to the explanations of economic events developed by:
Correct : A. physiocrats.
12. The French Physiocrats believed land was the only thing that could produce a net product, this net product was the surplus generated from land. Physiocrats concluded that a
reasonable measure of a society’s net product is:
Correct : B. land rent.
13. Management of the economy via extensive regulations and laws specified by the national government is most consistent with:
Correct : B. mercantilism.
14. The concept of _____ was illustrated by _____ with the quote, “The loss of a little finger would keep the average European from sleeping that night, ... but, provided he never saw them, he will snore with the most profound security over the loss of millions of his brethren.”
Correct : B. self interest; adam smith
15. The first comprehensive work on economics written in English was authored by Adam Smith in 1776 and entitled “An Inquiry into the Nature and Causes of the:
Correct : B. wealth of nations.”
16. Adam Smith’s theory of economic growth relies upon a ________ to kick-start the process, and then _________ to continue it.
Correct : D. division of labor / capital accumulation.
17. Social welfare is maximized when a “hedonistic calculus” regulates all human action according to the interventionist “liberal”:
Correct : D. jeremy bentham.
18. The theory that in equilibrium, workers’ wages will barely be adequate for biological needs is known as the:
Correct : C. subsistence theory of wages.
19. The Marxist theory of dialectical materialism theoretically follows a sequence:
Correct : C. thesis antithesis synthesis.
20. According to Karl Marx, the properties that distinguish commodities do not include:
Correct : D. inseparable from the individual that produced them.
21. The Marxist concept of surplus value would not include income received in the form of:
Correct : A. wages.
22. According to Karl Marx, revolution would inevitably come from the oppressed workers, known as the:
Correct : A. proletariat.
23. Which of the following was a belief shared by utopian and scientific socialists?
Correct : C. private property should be abolish
24. Which of the following characteristics is least representative of socialism?
Correct : A. personal profits are derived through market competition
25. Who was the social theorist that proposed socialism should serve as an intermediate stage on the way to an ideal communist society
Correct : A. karl marx
26. Marginalism and the idea that pricing reflects marginal utility and demand was a movement away from:
Correct : B. thelabor theory of value.
27. Explicit treatments of marginal analysis were least central to the writings of:
Correct : C. john stuart. mill.
28. The economist who spent twenty years cautiously trying out his ideas on his students before finally presenting them to the world near the close of the 19th century was: ]
Correct : D. alfred marshall
29. Alfred Marshall formalized and then popularized the analytical technique known as:
Correct : C. partial equilibrium analysis.
30. Vilfredo Pareto’s very deductive mathematical models and proofs made the market seem quite mechanistic, an approach most notably rejected by his slightly older contemporary:
Correct : C. alfred marshall.
31. The economic theorist who most vociferously opposed using “all else assumed constant” [ceteris paribus] assumptions when building theory was:
Correct : D. léon walras.
32. The Lausanne School is to Léon Walras as the Austrian School is to:
Correct : B. carl menger.
33. The idea that governmental redistributions of income or wealth will ultimately have no effect on how disparate income and wealth are distributed is sometimes called:
Correct : D. pareto’s law.
34. Which of the following is not among Rostow's stages of growth
Correct : B. the age of low mass consumption
35. Neoclassical economics views
Correct : B. nature as a source of raw materials and a sink for wastes
36. Which of the following is the nucleus of the Keynesian theory of employment?
Correct : B. the principle of effective demand
37. The study of the effect of consumption on investment is called
Correct : A. accelerator
38. Who among the following was the leader of Monetarism
Correct : B. milton friedman
39. The multiplier is the reciprocal of
Correct : A. marginal propensity to save
40. The mew classical economics is based on
Correct : A. market clearing
41. The welfare of all means:
Correct : B. sarvodaya
42. The desire of people to keep money with them is called by Keynes as:
Correct : C. liquidity preference
43. According to Keynes marginal efficiency of capital has a tendency to :
Correct : B. decrease
44. The change in income as a result of change in is investment called by Keynes as:
Correct : A. multiplier
45. Marginal efficiency of capital is :
Correct : A. the expected rate of profit from new investment
46. Keynes theory of employment relates to:
Correct : B. short run
47. The two important determinants of investment according to Keynes are:
Correct : A. interest rate and marginal efficiency of capital
48. According to Keynes consumption is a function of :
Correct : A. income
49. The author of the “End of Laissez faire” was.
Correct : A. keynes
50. The author of ‘Arthashastra’ is
Correct : A. kautilya
51. The Drain Theory is associated with the name of
Correct : C. dadabhai naroji
52. Dadabhai Naroji attributed poverty of India to
Correct : C. british rule
53. Dadabhai Noaroji attributed external drain to:
Correct : A. unrequired exports and no equivalent imports
54. Ambedkar was a champion of
Correct : D. state socialism
55. Ambedkar’s idea of state socialism is based on the unique blend of
Correct : A. marxism and buddhism
56. The chief architect of Indi’s second five year Plan was:
Correct : C. p.c.mahalanobis
57. Mahalanobis aimed at the economic development of India through
Correct : B. industrial development
58. The most important contribution of Mahalanobis is related to :
Correct : A. the design of large scale surveys
59. The wage good model was developed by
Correct : C. c.n.vakil and p.r.brahmananda
60. V.K.R.V. Rao is remembered for his contribution on:
Correct : A. national income of india
61. The formula adopted for distribution of Plan assistance during 4th and th Plan was:
Correct : A. gadgil formula
62. The forword to India’s 1st Five Year Plan was written by:
Correct : C. k.n.raj
63. Who among the following computed India’s balance of payment for the first time for Reserve Bank of India:
Correct : C. p.r.brahmananda
64. Amartya Sen was awarded Nobel Prize in Economics for his contribution to
Correct : A. welfare economicsand social choice theory
65. The world witnessed a great depression during –
Correct : A. 1929-33
66. The most prominent representative of supply side economics was :
Correct : B. arthur laffer
67. The ---- theory is associated with the name of Dadabai Naoroji.
Correct : B. drain
68. Dadabai Naoroji attributed ----- of India to British rule.
Correct : B. poverty
69. Ambedkar’s idea of ------ is based on a unique blend of Marxism and Budhism.
Correct : D. state socialism
70. ------ is regarded as the chief architect of Indian constitution.