Deck 2: Economic Thories and Thinkers

Question 1

Marginalism and the idea that pricing reflects marginal utility and demand was a movement away from:

A)the quantity theory of money.
B)thelabor theory of value.
C)mercantilism.
D)marx's business cycle theory.

Answer 1

thelabor theory of value.

Question 2

Explicit treatments of marginal analysis were least central to the writings of:

A)william stanley jevons.
B)léon walras.
C)john stuart. mill.
D)carl menger.

Answer 2

john stuart. mill.

Question 3

The economist who spent twenty years cautiously trying out his ideas on his students before finally presenting them to the world near the close of the 19th century was: ]

A)william stanley jevons.
B)henry george.
C)léon walras.
D)alfred marshall

Answer 3

alfred marshall

Question 4

Alfred Marshall formalized and then popularized the analytical technique known as:

A)general equilibrium analysis
B)felicific calculus.
C)partial equilibrium analysis.
D)differential equations.

Question 5

Vilfredo Pareto's very deductive mathematical models and proofs made the market seem quite mechanistic, an approach most notably rejected by his slightly older contemporary:

A)karl marx.
B)léon walras.
C)alfred marshall.
D)william stanley jevons.

Question 6

The economic theorist who most vociferously opposed using "all else assumed constant" [ceteris paribus] assumptions when building theory was:

A)karl marx.
B)alfred marshall.
C)thomas robert malthus .
D)léon walras.

Question 7

The Lausanne School is to Léon Walras as the Austrian School is to:

A)vilfredo pareto.
B)carl menger.
C)enrico barone.
D)david hume.

Question 8

The idea that governmental redistributions of income or wealth will ultimately have no effect on how disparate income and wealth are distributed is sometimes called:

A)say's law of markets.
B)the law of comparative advantage.
C)keynes' law.
D)pareto's law.

Question 9

Which of the following is not among Rostow's stages of growth

A)the traditional society
B)the age of low mass consumption
C)the take-off
D)the drive to maturity

Question 10

Which of the following is the nucleus of the Keynesian theory of employment?

A)the theory of consumption function
B)the principle of effective demand
C)marginal efficiency of capital
D)none of these

Question 11

The study of the effect of consumption on investment is called

A)accelerator
B)multiplier
C)leverage effect
D)none of these

Question 12

Who among the following was the leader of Monetarism

A)keynes
B)milton friedman
C)a.w.philip
D)mankiv

Question 13

The multiplier is the reciprocal of

A)marginal propensity to save
B)marginal propensity to consume
C)both mpc and mps
D)none of the above

Question 14

The mew classical economics is based on

A)market clearing
B)non-market clearing
C)both a and b
D)none of these

Question 15

The welfare of all means:

A)swaraj
B)sarvodaya
C)brahmacharya
D)swadeshi

Question 16

The desire of people to keep money with them is called by Keynes as:

A)investment
B)saving
C)liquidity preference
D)consumption

Question 17

According to Keynes marginal efficiency of capital has a tendency to :

A)increase
B)decrease
C)remains constant
D)none of these

Question 18

The change in income as a result of change in is investment called by Keynes as:

A)multiplier
B)accelerator
C)marginal efficiency of capital
D)none of these

Question 19

Marginal efficiency of capital is :

A)the expected rate of profit from new investment
B)the expected rate of profit from past investment
C)the expected rate of profit from saving
D)none of these.

Question 20

Keynes theory of employment relates to:

A)the long run
B)short run
C)very long period
D)none of these

Question 21

The two important determinants of investment according to Keynes are:

A)interest rate and marginal efficiency of capital
B)saving and interest rate
C)interest rate and consumption
D)none of these

Question 22

According to Keynes consumption is a function of :

A)income
B)saving
C)employment
D)none of these

Question 23

The author of the "End of Laissez faire" was.

A)keynes
B)friedman
C)laffer
D)j.b.say

Question 24

The author of 'Arthashastra' is

A)kautilya
B)bana bhatta
C)thiruvalluvar
D)kabir das