Question 1

Returns to scale examines the production function in the:

Accepted Answer

A) Short-term 
B) Medium term 
C) Long term 
D) Quinquinial C

Question 2

If marginal propensity to consume is 0.8, the value of multiplier will be:

Accepted Answer

A) 1 
B) 2.5 
C) 5 
D) 2 C

Question 3

In a horizontal straight line demand curve, the price elasticity of demand is:

Accepted Answer

A) Unity 
B) Infinity 
C) Zero 
D) Less than one B

Question 4

Keynesian aggregate supply curve is:

Accepted Answer

A) Perfectly elastic 
B) Perfectly inelastic 
C) Unitary elastic 
D) Parabola

Question 5

A simplified representation of a real situation is called:

Accepted Answer

A) Theory 
B) Hypotheses 
C) Evidence 
D) Economic Model

Exam 3: Macroeconomics, Production Functions and Keynesian Theory of Economics

Returns to scale examines the production function in the: