Top 150+ Solved Business Economics Macro MCQ Questions Answer
Q. In classical theory the equality between saving and investment is brought about by:
a. Rate of interest
b. Income
c. Consumption
d. Multiplier
Q. The normal condition of a capitalist economy in classical theory is:
a. Underemployment
b. Full employment
c. General unemployment
d. Frictional unemployment
Q. In classical theory of employment, there is the possibility of:
a. Voluntary unemployment
b. No unemployment
c. Involuntary unemployment
d. Disguised unemployment
Q. According to classical economists, variations in savings are due to:
a. Level of investment
b. Rate of interest
c. Level of employment
d. None of the above
Q. Supply creates its own demand is the Basis of:
a. Classical economics
b. Keynesian economics
c. Monetarism
d. None of these
Q. Which policy is effective in the Keynesian range?
a. Monetary policy
b. Fiscal policy
c. Incomes policy
d. None of these
Q. When output exceeds spending:
a. There is unsold output, and level of output will fall
b. There is unsold output, and level of output will rise
c. There is unsold output, and level of spending will rise
d. There is no unsold output since the level of spending will rise
Q. Entrepreneurs will have no tendency to expand or contract output and employment when
a. AD>AS
b. AD<AS
c. AD=AS
d. None of the above
Q. The concept of effective demand is associated with the name of
a. Marshall
b. Keynes
c. Krugman
d. Say
Q. Net investment is also known as
a. Depreciation
b. Induced investment
c. Autonomous investment
d. Capital formation