Top 350+ Solved Micro Economics 1 MCQ Questions Answer
Q. In classical theory which of the following is found in the economy:
a. Unemployment
b. Involuntary unemployment
c. Less than full employment
d. Full employment
Q. The quantity theory of money was restated by:
a. Alfred Marshall
b. Milton Friedman
c. Irving Fisher
d. J.M. .Keynes
Q. The law which states that supply creates its own demand and overproduction is impossible is known as:
a. The law of supply
b. Say’s law of market
c. Law of demand
d. Law of macro economics
Q. Wages and prices do not adjust quickly to restore general equilibrium is a property of
a. Classical economics
b. Keynesian economics
c. Monetary economics
d. Supply side economics
Q. When there is an increase in the autonomous money supply, ceteris paribus, LM shifts:
a. Leftward
b. Rightward
c. No shift
d. None
Q. An Economic model is a statement of relationship among economic ------
a. Variables
b. Phenomena
c. Development
d. None of these
Q. LM curve shows the equilibrium condition in ---------- market
a. Goods market
b. Product market
c. Money market
d. None of these
Q. Supply creates its own demand is the Basis of:
a. Classical economics
b. Keynesian economics
c. Monetarism
d. None of these
Q. The simplest ISLM model consists of:
a. Two markets
b. Three markets
c. Four markets
d. Five markets
Q. The equilibrium in the product market is represented by which curve?
a. IS
b. LM
c. Demand
d. Supply curve