Top 80+ Solved History of Economics Thought MCQ Questions Answer
Q. Neoclassical economics views
a. natural resources as the primary factor determining economic success
b. nature as a source of raw materials and a sink for wastes
c. a steady-state as the ultimate economic goal
d. the relationship between supply and demand as having minor importance
Q. 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
Q. The study of the effect of consumption on investment is called
a. . accelerator
b. . multiplier
c. .leverage effect
d. none of these
Q. Who among the following was the leader of Monetarism
a. .keynes
b. . milton friedman
c. . a.w.philip
d. mankiv
Q. 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
Q. The mew classical economics is based on
a. . market clearing
b. . non-market clearing
c. . both a and b
d. none of these
Q. 10. The desire of people to keep money with them is called by Keynes as:
a. .investment
b. .saving
c. . liquidity preference
d. consumption
Q. According to Keynes marginal efficiency of capital has a tendency to :
a. . increase
b. . decrease
c. . remains constant
d. none of these
Q. 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
Q. 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.
Q. Keynes theory of employment relates to:
a. .the long run
b. . short run
c. . very long period
d. none of these
Q. 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
Q. According to Keynes consumption is a function of :
a. .income
b. . saving
c. . employment
d. none of these