Top 350+ Solved Micro Economics 1 MCQ Questions Answer
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 k is:
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 of labour:
a. Remains constant
b. Increase
c. decreases
d. none of these
Q. In the classical theory, one of the following is an important assumption:
a. Wages and prices are inflexible
b. There is full employment
c. Agents are price setters
d. Adjustment is through quantity.
Q. In the Fisher’s extended equation of exchange MI VI represents:
a. Credit money
b. Primary money
c. Both primary and credit 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
Q. In classical system which of the following keeps the economy at full employment:
a. Level of saving
b. Increase in money supply
c. Adjustment in investment
d. Adjustment in money wages
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