Deck 7: Economics and Keynesian Theory

Question 1

According to Keynes, unemployment is due to:

A)deficiency of capital
B)deficiency of labour
C)deficiency of education
D)deficiency in effective demand

Answer 1

deficiency in effective demand

Question 2

"In the long run, we are all dead". Who said this?

A)keynes
B)adam smith
C)karl marx
D)david ricardo

Answer 2

keynes

Question 3

According to Keynes, investment is a function of:

A)rate of interest
B)rate of profit
C)rate of mei
D)mei and rate of interest

Answer 3

mei and rate of interest

Question 4

Keynes believed in :

A)full employment equilibrium
B)under employment equilibrium
C)both
D)none

Question 5

According to Keynes, wages and prices are:

A)rigid
B)flexible
C)variable
D)automatic

Question 6

In Economics, 1930s is popularly known as the period of:

A)great battle
B)great depression
C)industrial revolution
D)great devide

Question 7

Keynes strongly argued for:

A)free trade
B)non-intervention of government
C)laissez-faire
D)governmental intervention

Question 8

Consumption expenditure directly varies with:

A)savings
B)investment
C)disposable income
D)rate of interest

Question 9

An important issue of macro economics is the determination of:

A)consumption
B)production
C)utility
D)income and employment

Question 10

Pick the odd one:

A)aggregate demand
B)effective demand
C)j.m. keynes
D)law of market

Question 11

Which of the following items does not include in the group?

A)consumption
B)investment
C)rate of interest
D)net exports

Question 12

Who is known as the father of Modern Economics?

A)adam smith
B)j.m.keynes
C)robinson
D)ricardo

Question 13

Goods without which people can not live are called:

A)comforts
B)luxuries
C)necessaries
D)none

Question 14

The problem of what to produce is a problem of:

A)distribution
B)technological choice
C)consumption
D)allocation of resources

Question 15

Those things that possess both utility and scarcity are called:

A)economic goods
B)free goods
C)intermediate goods
D)luxuries

Question 16

If a worker specializes in the production of a single good, it is called:

A)product based division of labour
B)process based division of labour
C)worker based division of labour
D)none of these

Question 17

Goods produced for use in future productive process are called:

A)intermediate goods
B)final goods
C)consumer goods
D)capital goods

Question 18

Who wrote the article Laws of Returns Under Competitive Conditions?

A)joan robinson
B)e.h. chamberlin
C)a.c. pigou
D)p. sraffa

Question 19

Increase in output less than proportional to increase in inputs is called:

A)increasing returns
B)constant returns
C)diminishing returns
D)marginal returns

Question 20

When marginal product reaches its maximum, what can be said of total product?

A)total product must be at its maximum
B)total product starts to decline even if marginal product is positive
C)total product is increasing if marginal product is still positive
D)total product levels off