Question:

According to Keynes, rising aggregate income is always associated with

A.

Higher saving rate

B.

Higher import

C.

Lower export

D.

Low production

Answer» a. Higher saving rate

Question:

Inventories are unsold goods produced by a firm, then why do they are included in GDP?

A.

Inventories represent value

B.

Inventories add to the stock of the firm

C.

They are purchases by the firm itself

D.

All the above

Answer» c. They are purchases by the firm itself

Question:

Who defined economics as: a science which studies human behavior as a relationship between ends and scarce means which have alternative uses:

A.

J B Say

B.

Alfred Marshall

C.

David Ricardo

D.

Robbins

Answer» d. Robbins

Question:

The quantity theory of money was restated by:

A.

Alfred Marshall

B.

Milton Friedman

C.

Irving Fisher

D.

J.M. .Keynes

Answer» b. Milton Friedman

Question:

Elasticity of supply for a positively sloped straight line supply curve that intersects the price axis is:

A.

Equal to zero

B.

Equal to one

C.

Greater than one

D.

Constant

Answer» c. Greater than one

Question:

A market:

A.

Necessarily refers to a meeting place between buyers and sellers

B.

Does not necessarily refer to a meeting place between buyers and sellers

C.

Extends over the entire nation

D.

Extends over a city.

Answer» b. Does not necessarily refer to a meeting place between buyers and sellers

Question:

Average revenue is :

A.

TR – TC

B.

TR / No. of units sold

C.

TC / TR

D.

MC / AR

Answer» b. TR / No. of units sold

Question:

Keynesian three sector model consist of:

A.

Business sector, service sector, external sector

B.

Households, business, government

C.

Government sector, open sector, service sector

D.

Government sector, private sector, open sector

Answer» b. Households, business, government