Question:

Which of the following concepts are most closely associated with J.M. Keynes?

A.

Control of the money supply

B.

Marginal utility theory

C.

Indifference curve analysis

D.

Marginal efficiency of capital

Answer» d. Marginal efficiency of capital

Question:

The curve showing the possibilities of production of desired good is known as:

A.

Indifference curve

B.

Production possibility curve

C.

Revealed preference curve

D.

None of these

Answer» b. Production possibility curve

Question:

The services of a house wife are:

A.

Not part of Production

B.

A part of production

C.

A part of consumption

D.

Not a part of consumption

Answer» a. Not part of Production

Question:

The income effect for a commodity is

A.

is always positive

B.

is always negative

C.

depends upon price effect

D.

determines the nature of the commodity

Answer» d. determines the nature of the commodity

Question:

Other things remaining the same, the quantity of a product demanded increases with —– in price.

A.

Increase

B.

Decrease

C.

Variation

D.

None of the above

Answer» b. Decrease

Question:

Consumption of capital good in the process of production is called as

A.

Capital Consumption

B.

Depreciation

C.

Decay of Capital

D.

None of the above

Answer» b. Depreciation

Question:

In the classical system, the basic economic problems are solved by:

A.

Government

B.

Price mechanism

C.

Economists

D.

Central bank

Answer» b. Price mechanism

Question:

Usually an IS curve is a ——-line.

A.

Vertical

B.

Downward Slopping

C.

Horizontal

D.

Upward slopping

Answer» b. Downward Slopping

Question:

If both the products X & Y are normal goods

A.

slopes down towards right

B.

slopes up towards right

C.

slopes up towards left

D.

slopes down towards left

Answer» b. slopes up towards right

Question:

When Total Utility is maximum, Marginal Utility is :

A.

Zero

B.

Negative

C.

Positive

D.

One

Answer» a. Zero