Quiznetik

Basics of Economics | Set 2

1. Pick the odd one out:

Correct : C. ni at current prices

2. GDP deflator is given by:

Correct : B. nominal dgp/real gdp

3. Value of output minus intermediate consumption is:

Correct : B. value added

4. Personal income minus personal taxes is:

Correct : C. disposable income

5. National income is a --------variable.

Correct : A. flow

6. In India, National income is estimated at:

Correct : C. both current and constant prices

7. Which of the following is true:

Correct : A. gdp is a geographical concept

8. GNP measured in terms of current market prices is called:

Correct : A. nominal gnp

9. In India, the current base year is:

Correct : D. 2004-05

10. Which of the following doest not include in the group?

Correct : D. ndp

11. The term “Classical Economics” was first used by:

Correct : C. karl marx

12. Who is the leader of the Classical school?

Correct : D. adam smith.

13. The core of classical economists is:

Correct : C. say’s law of market

14. ‘Law of Market’ is attributed to:

Correct : B. j.b. say

15. The Classicals adopted ---------policy:

Correct : B. laissez-faire

16. According to Classicals, full employment is a:

Correct : B. normal phenomenon

17. According to the Classical economists, general over production is:

Correct : B. impossible

18. According to the Classical economists, savings and investments are:

Correct : B. always equal

19. Classical aggregate supply curve is:

Correct : B. perfectly inelastic

20. Pick the odd one from the following:

Correct : D. j.m. keynes

21. According to the Classicals, investment is a function of:

Correct : D. rate of interest

22. “Supply creates its own demand” is called:

Correct : B. law of market

23. Under the classical system, the equilibrium will be at:

Correct : B. full employment

24. When savings exceeds the demand for savings, the rate of interest will:

Correct : B. fall

25. Rate of interest will increase when the demand for saving is:

Correct : C. more than its supply

26. In the Classical system, the role of the government is:

Correct : C. limited

27. Equilibrium in the economy is settled by ---------, according to the Classicals.

Correct : B. price mechanism

28. Self interest, competition, profit motive are the features of:

Correct : B. capitalism

29. The Great Depression was during:

Correct : A. 1930s

30. The equilibrium price is determined by the forces of:

Correct : C. both demand and supply

31. Temporary unemployment is -------------, according to the Classical economists:

Correct : C. possible

32. J.B. Say was a ---------------Economist.

Correct : C. french

33. Pick the odd one out:

Correct : D. j.m. keynes

34. Author of the book ‘The General Theory of Employment, Interest and Money’:

Correct : C. j.m. keynes

35. ‘The General Theory’, was published in :

Correct : C. 1936

36. The branch of Economics that deals with economic aggregate is called:

Correct : C. macro economics

37. The central theme of Keynesian Theory is:

Correct : C. effective demand

38. Who repudiated Say’s law of market?

Correct : D. j.m. keynes

39. Effective demand is that demand when:

Correct : C. aggregate demand is equal to aggregate supply

40. The concept of effective demand is associated with the name of:

Correct : B. keynes

41. The proportion between total income and total consumption is called:

Correct : A. average propensity to consume

42. The proportion between incremental income and incremental consumption is called:

Correct : C. mpc

43. The proportion between total income and total saving is called:

Correct : B. aps

44. 1- MPC is called:

Correct : D. mps

45. APC + APS is equal to:

Correct : C. 1

46. Multiplier is obtained by:

Correct : D. 1/1-mpc

47. Exports minus imports is termed as:

Correct : C. net exports

48. As income increases consumption also increases, but:

Correct : C. less than proportionately

49. The expected return on investment is called:

Correct : D. marginal efficiency of investment

50. Marginal efficiency of investment curve is:

Correct : A. slopping downwards

51. According to Keynes, unemployment is due to:

Correct : D. deficiency in effective demand

52. “In the long run, we are all dead”. Who said this?

Correct : A. keynes

53. According to Keynes, investment is a function of:

Correct : D. mei and rate of interest

54. Keynes believed in :

Correct : B. under employment equilibrium

55. According to Keynes, wages and prices are:

Correct : A. rigid

56. In Economics, 1930s is popularly known as the period of:

Correct : B. great depression

57. Keynes strongly argued for:

Correct : D. governmental intervention

58. Consumption expenditure directly varies with:

Correct : C. disposable income

59. An important issue of macro economics is the determination of:

Correct : D. income and employment

60. Pick the odd one:

Correct : D. law of market

61. Which of the following items does not include in the group?

Correct : C. rate of interest

62. If marginal propensity to consume is 0.8, the value of multiplier will be:

Correct : C. 5

63. Who is known as the father of Modern Economics?

Correct : A. adam smith

64. Goods without which people can not live are called:

Correct : C. necessaries

65. The problem of what to produce is a problem of:

Correct : D. allocation of resources

66. Those things that possess both utility and scarcity are called:

Correct : A. economic goods

67. If a worker specializes in the production of a single good, it is called:

Correct : A. product based division of labour

68. Goods produced for use in future productive process are called:

Correct : D. capital goods

69. In a horizontal straight line demand curve, the price elasticity of demand is:

Correct : B. infinity

70. Who wrote the article Laws of Returns Under Competitive Conditions?

Correct : D. p. sraffa

71. Increase in output less than proportional to increase in inputs is called:

Correct : C. diminishing returns

72. A simplified representation of a real situation is called:

Correct : D. economic model

73. When marginal product reaches its maximum, what can be said of total product?

Correct : C. total product is increasing if marginal product is still positive

74. When a firm doubles its inputs and finds that its output has more than doubled, this is known as:

Correct : A. economies of scale.

75. When average product is at a maximum, marginal product is:

Correct : C. equal to average product

76. The want satisfying power of a commodity:

Correct : B. utility

77. Supply curve represents -------- relationship between quantity and price.

Correct : A. direct

78. Laws of return shows ---------production function.

Correct : A. short-term

79. In classical theory the level of employment is a function of:

Correct : D. real wage rate

80. Consumption of capital good in the process of production is called as:

Correct : B. depreciation

81. Economic Laws are:

Correct : A. statement of tendencies