Top 150+ Solved General Economics 1 MCQ Questions Answer
Q. According to the Classicals, investment is a function of:
a. Saving
b. Income
c. Employment
d. Rate of Interest
Q. “Supply creates its own demand” is called:
a. Law of supply
b. Law of market
c. Law of demand
d. Law of elasticity
Q. Under the classical system, the equilibrium will be at:
a. Under employment
b. Full employment
c. Voluntary employment
d. Disguised unemployment
Q. When savings exceeds the demand for savings, the rate of interest will:
a. Rise
b. Fall
c. Remain constant
d. None of these
Q. Rate of interest will increase when the demand for saving is:
a. Less than its supply
b. Equal to its supply
c. More than its supply
d. Less than or equal to its supply
Q. In the Classical system, the role of the government is:
a. The highest
b. Not at all needed
c. Limited
d. Important
Q. Equilibrium in the economy is settled by ---------, according to the Classicals.
a. Centralized planning
b. Price mechanism
c. Both the planning and price mechanism
d. None of these
Q. Say’s Law of market was proved wrong by:
a. Industrial revolution
b. Great Depression
c. Green revolution
d. Gulf war
Q. Self interest, competition, profit motive are the features of:
a. Socialism
b. Capitalism
c. Marxism
d. Mixed economy
Q. The equilibrium price is determined by the forces of:
a. Supply only
b. Demand only
c. Both Demand and Supply
d. None of these
Q. Temporary unemployment is -------------, according to the Classical economists:
a. Impossible
b. Permanent
c. Possible
d. None of these
Q. Author of the book ‘The General Theory of Employment, Interest and Money’:
a. Karl Marxq
b. J. Say
c. J.M. Keynes
d. Adam Smith