Question 1

According to Keynes the most important determinant of investment

Accepted Answer

A) MEC 
B) Effective demand 
C) Aggregate demand 
D) Rate of interest 
A) MEC 
B) Effective demand 
C) Aggregate demand 
D) Rate of interest A

Question 2

Keynesian economics is also known as:

Accepted Answer

A) Supply side economics 
B) Monetary economics 
C) Rational expectations 
D) Depression economics 
A) Supply side economics 
B) Monetary economics 
C) Rational expectations 
D) Depression economics D

Question 3

Which of the following can cause shifts in consumption function:

Accepted Answer

A) Psychological attitude 
B) Social practices 
C) Business motives 
D) Changes in price level 
A) Psychological attitude 
B) Social practices 
C) Business motives 
D) Changes in price level D

Question 4

In Keynesian terminology, investment means:

Accepted Answer

A) Financial investment 
B) Real investment 
C) Induced investment 
D) None of the above 
A) Financial investment 
B) Real investment 
C) Induced investment 
D) None of the above

Question 5

According to Keynes the most important determinant of consumption

Accepted Answer

A) Rate of interest 
B) Saving 
C) Income 
D) Investment 
A) Rate of interest 
B) Saving 
C) Income 
D) Investment

Question 6

Which of the following is not correct:

Accepted Answer

A) MPC declines as income increases 
B) MPC is positive but less than one 
C) MPS is always positive 
D) All the above 
A) MPC declines as income increases 
B) MPC is positive but less than one 
C) MPS is always positive 
D) All the above

Question 7

According to Keynes, saving is:

Accepted Answer

A) Private virtue but not social virtue 
B) Private and social virtue 
C) Is neither private virtue nor social virtue 
D) Is either social virtue or private virtue 
A) Private virtue but not social virtue 
B) Private and social virtue 
C) Is neither private virtue nor social virtue 
D) Is either social virtue or private virtue

Question 8

In the Keynesian two sector economy, AD<AS, then

Accepted Answer

A) S=I B) S>I C) SI C) S

Question 9

MEC is inversely related to:

Accepted Answer

A) Prospective yield 
B) Supply price 
C) Investment 
D) Rate of interest 
A) Prospective yield 
B) Supply price 
C) Investment 
D) Rate of interest

Question 10

Autonomous investment is

Accepted Answer

A) Income inelastic 
B) Instable 
C) Interest elastic 
D) Income elastic 
A) Income inelastic 
B) Instable 
C) Interest elastic 
D) Income elastic

Question 11

In the Keynesian two sector model, when AD = AS, then:

Accepted Answer

A) SI 
C) S=I 
D) I=0 
A) SI 
C) S=I 
D) I=0

Question 12

Who postulated the law Supply creates its own demand

Accepted Answer

A) Keynes 
B) J B say 
C) Marshall 
D) Pigou 
A) Keynes 
B) J B say 
C) Marshall 
D) Pigou

Question 13

When disposable income rises from Rs 500 to Rs 600 and consumption expenditure changes from Rs 470 to Rs 560, MPC will be equal to

Accepted Answer

A) 900 
B) 100 
C) 0.9 
D) 1 
A) 900 
B) 100 
C) 0.9 
D) 1

Question 14

In the Keynesian two sector economy, AD>AS, then

Accepted Answer

A) S=I B) S>I C) SI C) S

Question 15

Schedule that expresses relationship between rate of interest and corresponding amount of investment

Accepted Answer

A) MEI 
B) MEC 
C) Effective Demand 
D) Aggregate Demand 
A) MEI 
B) MEC 
C) Effective Demand 
D) Aggregate Demand

Question 16

APC is determined by the following equation:

Accepted Answer

A) C/Y 
B) S/Y 
C) ?C/?Y 
D) ?S/?Y 
A) C/Y 
B) S/Y 
C) ?C/?Y 
D) ?S/?Y

Question 17

In a two sector economy, aggregate demand is equal to

Accepted Answer

A) C+I 
B) C+S 
C) S+I 
D) All of the above 
A) C+I 
B) C+S 
C) S+I 
D) All of the above

Question 18

MEC is directly related to

Accepted Answer

A) Prospective yield 
B) Supply price 
C) Rate of interest 
D) All of the above 
A) Prospective yield 
B) Supply price 
C) Rate of interest 
D) All of the above

Question 19

Rate of change in savings to change in income:

Accepted Answer

A) APS 
B) APC 
C) MPS 
D) MPC 
A) APS 
B) APC 
C) MPS 
D) MPC

Question 20

Value of MPC is

Accepted Answer

A) >1 B) <1 C) 0 D) 0? MPC ?1 A) >1 B) <1 C) 0 D) 0? MPC ?1

According to Keynes the most important determinant of investment

Keynesian economics is also known as:

Which of the following can cause shifts in consumption function:

In Keynesian terminology, investment means:

According to Keynes the most important determinant of consumption

Which of the following is not correct:

According to Keynes, saving is:

In the Keynesian two sector economy, AD

MEC is inversely related to:

Autonomous investment is

In the Keynesian two sector model, when AD = AS, then:

Who postulated the law Supply creates its own demand

When disposable income rises from Rs 500 to Rs 600 and consumption expenditure changes from Rs 470 to Rs 560, MPC will be equal to

In the Keynesian two sector economy, AD>AS, then

Schedule that expresses relationship between rate of interest and corresponding amount of investment

APC is determined by the following equation:

In a two sector economy, aggregate demand is equal to

MEC is directly related to

Rate of change in savings to change in income:

Value of MPC is

Consumer Theory and Utility

Indifference Curve Analysis and Consumer Theory

Cost Theory and Production Possibility Curve Analysis

Classical Economic Theory

Macroeconomic Theory and Models

Macroeconomic Equilibrium and Concepts

National Income and Keynesian Economics

Economics and Economic Theory

Economic Concepts and Theories

Macroeconomics and Economic Theories

Economics and Economic Methods

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Production and Costs

Demand Analysis and Utility Theory

Indifference Curves, Ordering, Wealth of Nations, and More

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Elasticity of Supply and Demand

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Exam 7: Keynesian Economics and Related Concepts

According to Keynes the most important determinant of investment

Keynesian economics is also known as:

Which of the following can cause shifts in consumption function:

In Keynesian terminology, investment means:

According to Keynes the most important determinant of consumption

Which of the following is not correct:

According to Keynes, saving is:

In the Keynesian two sector economy, AD

MEC is inversely related to:

Autonomous investment is

In the Keynesian two sector model, when AD = AS, then:

Who postulated the law Supply creates its own demand

When disposable income rises from Rs 500 to Rs 600 and consumption expenditure changes from Rs 470 to Rs 560, MPC will be equal to

In the Keynesian two sector economy, AD>AS, then

Schedule that expresses relationship between rate of interest and corresponding amount of investment

APC is determined by the following equation:

In a two sector economy, aggregate demand is equal to

MEC is directly related to

Rate of change in savings to change in income:

Value of MPC is

Consumer Theory and Utility

Indifference Curve Analysis and Consumer Theory

Cost Theory and Production Possibility Curve Analysis

Classical Economic Theory

Macroeconomic Theory and Models

Macroeconomic Equilibrium and Concepts

National Income and Keynesian Economics

Economics and Economic Theory

Economic Concepts and Theories

Macroeconomics and Economic Theories

Economics and Economic Methods

Economics and Social Science

Production and Costs

Demand Analysis and Utility Theory

Indifference Curves, Ordering, Wealth of Nations, and More

Economics Questions on Demand and Supply

Elasticity of Supply and Demand

Filters