Top 150+ Solved Basics of Economics Studies MCQ Questions Answer
Q. The concept of effective demand is associated with the name of:
a. Marshall
b. Keynes
c. Krugman
d. Adam Smith
Q. The proportion between total income and total consumption is called:
a. Average propensity to consume
b. Average propensity to save
c. Marginal propensity to consume
d. Marginal propensity to save
Q. The proportion between incremental income and incrementalconsumption is called:
a. APC
b. APS
c. MPC
d. MPS
Q. Exports minus imports is termed as:
a. Net income
b. Net imports
c. Net exports
d. National Income
Q. As income increases consumption also increases, but:
a. Proportionately
b. More than proportionately
c. Less than proportionately
d. Equally
Q. The expected return on investment is called:
a. Marginal propensity to save
b. Marginal propensity to consume
c. Marginal revenue
d. Marginal efficiency of investment
Q. Marginal efficiency of investment curve is:
a. Slopping downwards
b. Slopping upwards
c. Parallel to X axis
d. Parallel to Y axis
Q. According to Keynes, unemployment is due to:
a. Deficiency of capital
b. Deficiency of labour
c. Deficiency of education
d. Deficiency in effective demand
Q. “In the long run, we are all dead”. Who said this?
a. Keynes
b. Adam Smith
c. Karl Marx
d. David Ricardo
Q. 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
Q. Keynes believed in :
a. Full employment equilibrium
b. Under employment equilibrium
c. Both
d. None