Top 150+ Solved Macro Economics 1 MCQ Questions Answer
Q. The classical economists believed that the demand for labour is a function of:
a. total money wages
b. money wage rate
c. total real wages
d. real wage rate
Q. In classical theory of employment, there isthe possibility of:
a. voluntary unemployment
b. no unemployment
c. involuntary unemployment
d. disguised unemployment
Q. The idea that a general cut in wages will finally lead to a state of full employment wassuggested by :
a. keynes
b. marshall
c. j.b.say
d. a.c.pigou
Q. Say’s law of market says:
a. supply creates its own demand
b. demand creates supply
c. income generates demand
d. savings create demand
Q. The aggregate production function implied under classical theory is :
a. long run
b. short run
c. no time element
d. none of the above
Q. In the Cambridge equation of M = kPR, the value of kis:
a. m/v
b. 1/v
c. v in fisher’s equation
d. none of these
Q. As a result of an increase in capital, ceteris paribus, ------- the marginal productivity oflabour:
a. remains constant
b. increase
c. decreases
d. none of these
Q. In the Fisher’s extended equation of exchange MI VI represents:
a. credit money
b. primary money
c. both primary andcredit money
d. general price level
Q. In Fisher’s transaction velocity model, one of the following is not an assumption:
a. velocity of circulation of money is constant
b. the volume of transactions is constant
c. full employment
d. p is considered as an active factor
Q. In the equation MV+ MI VI = PT, ‘M ‘denotes:
a. velocity of money
b. money in circulation
c. bank deposit
d. none of these
Q. I classical demand for money, the relationship between money supply and price level is:
a. proportional
b. non-proportional
c. neither proportional nor non-proportional
d. none of these
Q. As per classical theory saving is:
a. an increasing function of rate of interest
b. decreasing function of rate of interest
c. decreasing function of level of income
d. none of these
Q. The Cambridge version of the quantity theory of money was developed by:
a. fisher
b. alfred marshall
c. pigou
d. keynes