Question:

The idea that a general cut in wages will finally lead to a state of full employment was suggested by :

A.

Keynes

B.

Marshall

C.

J.B.Say

D.

A.C.Pigou

Answer» d. A.C.Pigou

Question:

Who had a different macro theory than the rest?

A.

Adam Smith

B.

David Ricardo

C.

Malthus

D.

J.B.Say

Answer» c. Malthus

Question:

If one perfectly competitive firm increases its level of output, market supply

A.

will increase and market price will fall

B.

will increase and market price will rise

C.

and market price will both remain constant

D.

will decrease and market price will rise

Answer» c. and market price will both remain constant

Question:

Engel curve for giffen good is

A.

positively sloped

B.

negatively sloped

C.

horizontal straight line

D.

vertical straight line

Answer» b. negatively sloped

Question:

‘Higher the indifference curve higher will be level of satisfaction’. Thestatement is

A.

always true

B.

always false

C.

sometimes true and sometimes false

D.

true only if price effect is positive

Answer» a. always true

Question:

MEC for a capital good was found out to be 10% and the market rate of interest is 9%, then the investment is

A.

Not profitable

B.

Profitable

C.

Breakeven

D.

Cannot say

Answer» b. Profitable

Question:

International Social Science Associations were founded under the auspices of___________

A.

UNESCO

B.

World Bank

C.

IMF

D.

USA

Answer» a. UNESCO