Question:

If the value of a variable varies as a consequence of the variation in the value of someother variable, it is called:

A.

exogenous variable

B.

endogenours v ariable

C.

stock

D.

flow

Answer» a. exogenous variable

Question:

The classical economists believed that the demand for labour is a function of:

A.

total money wages

B.

money wage rate

C.

total real wages

D.

real wage rate

Answer» d. real wage rate

Question:

Who made the first major attempt to estimate national income in a somewhatcomprehensive manner?

A.

robert fisher

B.

john maynard keynes

C.

simon kuznets

D.

arthur pigou

Answer» c. simon kuznets

Question:

The idea that a general cut in wages will finally lead to a state of full employment wassuggested by :

A.

keynes

B.

marshall

C.

j.b.say

D.

a.c.pigou

Answer» d. a.c.pigou

Question:

Which of the following is not correct:

A.

mpc declines as income increases

B.

mpc is positive but less than one

C.

mps is always positive

D.

all the above

Answer» c. mps is always positive

Question:

Employment equilibrium in the Classical theory is achievedthrough:

A.

wage-price flexibility.

B.

changes in aggregate demand

C.

changes in aggregate supply

D.

none of these.

Answer» a. wage-price flexibility.

Question:

Adam Smith, the father of modern economic theory, defined economics as a subject,which is mainly concerned with the study of nature and causes of generation of

A.

wealth

B.

welfare

C.

hipness

D.

scarcity

Answer» a. wealth

Question:

In a two sector economy, aggregate demand is equalto

A.

c+i

B.

c+s

C.

s+i

D.

all of the above

Answer» a. c+i

Question:

As the value of MPC increases, the value ofmultiplier:

A.

decreases

B.

increases

C.

constant

D.

cannot

Answer» b. increases

Question:

The problem of scarcity and choice making can be depicted using the tool of curve.

A.

demand

B.

isoquant

C.

indifference

D.

production possibility

Answer» d. production possibility