Question:

introduced the concept of welfare in the study of economics:

A.

fischer

B.

alfred marshall

C.

j s mill

D.

adam smith

Answer» b. alfred marshall

Question:

In the equation C = 60 + 0.6 Y, MPCis

A.

60

B.

0.6

D.

1

Answer» b. 0.6

Question:

Investment is reckoned by which method for computing GDP:

A.

income method

B.

productmethod

C.

expenditure method

D.

value added method

Answer» c. expenditure method

Question:

According to Keynes the most important determinant ofinvestment

A.

mec

B.

effective demand

C.

aggregate demand

D.

rate of interest

Answer» a. mec

Question:

The LM curve has a——slope

A.

positive

B.

negative

C.

zero

D.

none of these

Answer» a. positive

Question:

Who argued that national income issimply equal to “net product of agriculture”?

A.

mercantilists

B.

physiocrats

C.

classical economists

D.

neo classical economists

Answer» b. physiocrats

Question:

MEC is directly related to

A.

prospective yield

B.

supply price

C.

rate of interest

D.

all of the above

Answer» a. prospective yield

Question:

Which one in the following is a flow variable?

A.

debt

B.

wealth

C.

unemployment

D.

gdp

Answer» d. gdp

Question:

The Cambridge version of the quantity theory of money was developed by:

A.

fisher

B.

alfred marshall

C.

pigou

D.

keynes

Answer» c. pigou

Question:

Which of the following is an example of economic overhead?

A.

schools

B.

roads and railwlays

C.

sanitary facilities

D.

hospitals

Answer» b. roads and railwlays