Question:

In Fisher’s equation of exchange MV=PT, the variation of which produces aproportional change in price:

A.

m

B.

v

C.

p

D.

t

Answer» a. m

Question:

Which policy is effective in the Classical range?

A.

monetary policy

B.

fiscal policy

C.

incomes policy

D.

none of these

Answer» a. monetary policy

Question:

Decisions made in households, firms, and government are the focus of:

A.

positive economic

B.

microeconomics

C.

normative economics

D.

macroeconomics

Answer» c. normative economics

Question:

In the Keynesian two sector economy, AD>AS, then

A.

s=i

B.

s>i

C.

s<i

D.

s=0

Answer» c. s<i

Question:

As a result of an increase in capital, ceteris paribus, ——- the marginal productivity oflabour:

A.

remains constant

B.

increase

C.

decreases

D.

none of these

Answer» b. increase

Question:

Classicals treated money as a:

A.

medium of exchange

B.

store of value

C.

both

D.

none

Answer» a. medium of exchange

Question:

When saving is greater than investment in a two-sectormodel,

A.

outputshould increase

B.

output should decrease

C.

output should not change

D.

none of these

Answer» b. output should decrease

Question:

Disposable Income does not include:

A.

excise dutypaid

B.

income tax

C.

customs dutypaid

D.

none of theabove

Answer» b. income tax

Question:

Which one of the following includes ‘income ofresidents’?

A.

gdp

B.

nnp

C.

sdp

D.

none of the above

Answer» b. nnp

Question:

In Fisher’s transaction velocity model, one of the following is not an assumption:

A.

velocity of circulation of money is constant

B.

the volume of transactions is constant

C.

full employment

D.

p is considered as an active factor

Answer» d. p is considered as an active factor