Top 350+ Solved Micro Economics 1 MCQ Questions Answer
Q. Who invented the General Equilibrium analysis?
a. L. Walras.
b. W. Leontief
c. J.M.Keynes.
d. None of these.
Q. Employment equilibrium in the Classical theory is achieved through:
a. Wage-Price flexibility.
b. Changes in aggregate demand
c. Changes in aggregate supply
d. None of these.
Q. Market does not clear is a proposition of:
a. Neoclassical theory.
b. Keynesian Economics
c. Monetarism
d. Rational expectations
Q. The interest rate paid on bonds is known as:
a. Call rate
b. Coupon rate
c. Repo rate
d. Bank rate
Q. The monetary policy is completely ineffective when the LM curve is:
a. Vertical .
b. Horizontal.
c. Upward sloping.
d. Downward sloping
Q. Changes in the subjective or objective factors
a. Never affect consumption function
b. Always cause downward shift in consumption function
c. Always cause upward shift in consumption function
d. They cause upward or downward shifts in consumption function
Q. Entrepreneurs will have no tendency to expand or contract output and employment when
a. AD>AS
b. AD<AS
c. AD=AS
d. None of the above
Q. The concept of effective demand is associated with the name of
a. Marshall
b. Keynes
c. Krugman
d. Say
Q. Net investment is also known as
a. Depreciation
b. Induced investment
c. Autonomous investment
d. Capital formation