Question:

Which one of the following definition of Economics is associated with the name of Lionel Robbins?

A.

Welfare definition

B.

Scarcity definition

C.

Growth definition

D.

Wealth definition

Answer» b. Scarcity definition

Question:

The U shape of the average total cost curve reflects

A.

ldmu

B.

the law of variable proportions

C.

consumer’s surplus

D.

reserve capacity

Answer» a. ldmu

Question:

According to Keynesian analysis, consumption is a function of:

A.

Permanent income

B.

Current income

C.

Estimated lifetime income

D.

Previous income.

Answer» b. Current income

Question:

If the percentage increase in the quantity demanded of a commodity is smaller than the percentage fall in its price, the coefficient of price elasticity:

A.

Greater than one

B.

Equal to one

C.

Smaller than one

D.

Zero

Answer» c. Smaller than one

Question:

I classical demand for money, the relationship between money supply and price level is:

A.

Proportional

B.

Non-proportional

C.

Neither proportional nor non-proportional

D.

None of these

Answer» b. Non-proportional

Question:

The slope of the consumption function is called

A.

MPC

B.

MPS

C.

APC

D.

APS

Answer» a. MPC

Question:

If a positively sloped linear supply curve passes through the origin, the elasticity of supply is:

A.

Inelastic

B.

Elastic

C.

Unitary elastic

D.

Perfectly elastic

Answer» c. Unitary elastic

Question:

Growth definition of economics was concerned with:

A.

Scarcity

B.

Welfare

C.

Wealth

D.

Economic growth

Answer» d. Economic growth

Question:

Who first introduced the concept of circular flow of income?

A.

William Petty

B.

Adam Smith

C.

David Ricardo

D.

Fancois Quesnay

Answer» d. Fancois Quesnay

Question:

The phenomenon of increase in money wages that leads to increases in unemployment is shown by:

A.

Speculative demand curve

B.

Phillip’s curve

C.

Aggregate supply

D.

Income consumption curve

Answer» b. Phillip’s curve