Question:

Value of money:

A.

Is inversely related to the price level

B.

Is directly related to the price level

C.

Is independent of the price level

D.

None of these

Answer» a. Is inversely related to the price level

Question:

Which of the following is Gossen’s first law:

A.

Law of Diminishing Marginal Utility

B.

Law of Equi Marginal Utility

C.

Law of substitution

D.

Law of Diminishing Returns

Answer» a. Law of Diminishing Marginal Utility

Question:

Employment equilibrium in the Classical theory is achieved through:

A.

Wage-Price flexibility.

B.

Changes in aggregate demand

C.

Changes in aggregate supply

D.

None of these.

Answer» a. Wage-Price flexibility.

Question:

The IS curve has a ——slope

A.

Positive

B.

Negative

C.

Zero

D.

None of these

Answer» b. Negative

Question:

State whether Economics is :

A.

A positive science only

B.

Neither a positive science

C.

A science but not art

D.

A science or an art depending on who uses Economics and for what

Answer» d. A science or an art depending on who uses Economics and for what

Question:

In the linear consumption function C = a + bY, coefficient ‘a’ denotes

A.

MPC

B.

APC

C.

Autonomous consumption

D.

Induced consumption

Answer» c. Autonomous consumption

Question:

The horizontal supply curve parallel to quantity axis represents:

A.

Elastic supply

B.

Inelastic supply

C.

Perfectly elastic supply

D.

Perfectly inelastic supply

Answer» c. Perfectly elastic supply

Question:

In a combination of X and Y, if price of Y alone changes, the X intercept will :

A.

Rotate upwards

B.

Rotate downwards

C.

Not be changed

D.

Parallel

Answer» c. Not be changed

Question:

Whenever marginal product is declining with increasing use of an input,

A.

Total product is declining as input increases.

B.

Average product is declining as input use increases

C.

Marginal product is greater than average product

D.

Total product is increasing at a decreasing rate as input use increases.

Answer» d. Total product is increasing at a decreasing rate as input use increases.

Question:

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

A.

Robert Fisher

B.

John Maynard Keynes

C.

Simon Kuznets

D.

Arthur Pigou

Answer» c. Simon Kuznets