Deck 9: Economics and Economic Theory

Question 1

Imputed value of good is added to the GDP because:

A)They indeed represent value
B)There is no market price for that
C)They increase consumption
D)None of the above

Answer 1

There is no market price for that

Question 2

GDP Deflator is also called as:

A)Implicit Cost Deflator
B)GDP at Factor Cost
C)Implicit Wage Deflator
D)Implicit Price Deflator

Answer 2

Implicit Price Deflator

Question 3

Personal Income includes:

A)Dividend distributed
B)Social insurance contributions
C)Corporate profit
D)None of the above

Answer 3

Dividend distributed

Question 4

Disposable Income does not include:

A)Excise duty paid
B)Income tax
C)Customs duty paid
D)None of the above

Question 5

Investment is reckoned by which method for computing GDP:

A)Income Method
B)Product method
C)Expenditure Method
D)Value added Method

Question 6

Adam Smith, the father of modern economic theory, defined economics as a subject, which is mainly concerned with the study of nature and causes of generation of ______

A)Wealth
B)Welfare
C)Hipness
D)Scarcity

Question 7

_________ introduced the concept of welfare in the study of economics:

A)Fischer
B)Alfred Marshall
C)J S Mill
D)Adam Smith

Question 8

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

Question 9

The problem of scarcity and choice making can be depicted using the tool of ___ curve.

A)Demand
B)Isoquant
C)Indifference
D)Production possibility

Question 10

Macroeconomics is primarily concerned with aggregates. Which of the following is not a macroeconomic aggregate?

A)Decision making by a household
B)The unemployment rate, and inflation levels
C)National income
D)The supply of money

Question 11

Scientific attempts to describe economic relationships are :

A)Factual and can never be wrong
B)Accurate ways to predict political viewpoints
C)Known as positive economics
D)Directed at the fairness of social programs

Question 12

The ________ method consists in deriving conclusions from general truths, takes few general principles and applies them draw conclusions.

A)Inductive
B)Deductive
C)Empirical
D)Scientific

Question 13

________is a term referring to an intellectual controversy over epistemology, research methodology between Carl Menger, and Gustav von Schmoller.

A)Methodenstreit
B)Laissez-faire
C)Cetris Paribus
D)Quid Proquo

Question 14

Inductive method which also called empirical method was adopted by the:

A)Marginalist school
B)Mercantilists
C)Physiocrats
D)Historical School of Economists

Question 15

Decisions made in households, firms, and government are the focus of:

A)Positive economic
B)Microeconomics
C)Normative economics
D)Macroeconomics

Question 16

Knowledge used to combine resources productively is called:

A)Comparative advantage
B)Capitalism
C)Entrepreneurship
D)Technology

Question 17

Economic efficiency for the entire economy requires that :

A)Potential gains to anyone necessitate losses to another
B)All goods be produced at their lowest possible opportunity costs
C)Maximum-valued output is obtained from given resource
D)All of the above

Question 18

Theories are:

A)Much more complicated than common sense
B)Scientific only if based on normative value judgments
C)Proven if only a few unimportant exceptions exist
D)Developed when we collect data, try to explain how things work, and then

Question 19

Division of Labour is limited by the extent of:

A)Supply
B)Demand
C)Price
D)Market

Question 20

Milton Friedman restated the :

A)Labour Theory
B)Profit Theory
C)Quantity Theory of Money
D)Wage theory

Question 21

If the value of a variable varies as a consequence of the variation in the value of some other variable, it is called:

A)Exogenous variable
B)Endogenours v ariable
C)Stock
D)Flow

Question 22

Which of the following concepts are most closely associated with J.M. Keynes?

A)Control of the money supply
B)Marginal utility theory
C)Indifference curve analysis
D)Marginal efficiency of capital