Question:

When average product is at a maximum, marginal product is

A.

Zero

B.

Increasing

C.

Equal to average product

D.

Greater than average product

Answer» c. Equal to average product

Question:

In the classical theory the equlity between saving and investment is brought about by:

A.

Income

B.

Rate Interest

C.

Consumption

D.

None of these

Answer» b. Rate Interest

Question:

Ratio of consumption expenditure to any particular level of income

A.

MPS

B.

APS

C.

APC

D.

MPC

Answer» c. APC

Question:

In the Cambridge equation of M =KPR, the value of “K” is:

A.

“V” in the Fisher’s Equation

B.

1/V

C.

M/V

D.

None of these

Answer» b. 1/V

Question:

When of the following is correct:

A.

1/MPS = value of the multiplier

B.

1/MPS = Accelerator co-efficient

C.

1/MPS = MEC

D.

None of these

Answer» a. 1/MPS = value of the multiplier

Question:

The minimum point of ATC is at ……………….position of the minimum point of AVC

A.

right

B.

left

C.

same

D.

all of above can be

Answer» b. left

Question:

Relation between price of a commodity and demand for another commodity is measured by:

A.

Price elasticity

B.

Income elasticity

C.

Cross elasticity

D.

Elasticity of substitution

Answer» c. Cross elasticity

Question:

If the long run cost curve shifts down wards it is an indication of

A.

technological progress

B.

lower factor prices

C.

both of these

D.

reserve capacity

Answer» c. both of these

Question:

”Mr. Keynes and the Classics” is the title of the famous paper by :

A.

Hansen

B.

Hicks

C.

Harrod

D.

Haberler

Answer» b. Hicks

Question:

In which of the following situations will an increase in the money supply have no effect upon output?

A.

LM is steeply sloped and IS is steeply sloped

B.

LM is vertical and IS is steeply sloped

C.

LM is steeply sloped and IS is vertical

D.

LM is relatively flat as is IS

Answer» c. LM is steeply sloped and IS is vertical