Top 350+ Solved Micro Economics 1 MCQ Questions Answer
Q. Starting point of Keynesian economics is:
a. Effective demand
b. Individual demand
c. Aggregate demand
d. Market demand
Q. Keynesian three sector model consist of:
a. Business sector, service sector, external sector
b. Households, business, government
c. Government sector, open sector, service sector
d. Government sector, private sector, open sector
Q. A substantial increase in the rate of interest can cause:
a. Increase in savings
b. Reduce propensity to consume
c. All the above
d. None of the above
Q. Functional relationship between saving and disposable income is:
a. Saving function
b. Income function
c. Consumption function
d. Investment function
Q. As the value of MPC increases, the value of multiplier:
a. Decreases
b. Increases
c. Constant
d. Cannot say
Q. Who among the following pioneered the first real estimate of national income?
a. Adam Smith
b. David Ricardo
c. William Petty
d. None of the above
Q. Who argued that national income is simply equal to “net product of agriculture”?
a. Mercantilists
b. Physiocrats
c. Classical Economists
d. Neo Classical Economists
Q. Who argued that “Everything that is produced in the course of a year, every service rendered, every fresh utility brought about is a part of the national wealth.”?
a. JS Mill
b. Stanley Jevons
c. Alfred Marshall
d. Robert Malthus
Q. Who made the first major attempt to estimate national income in a somewhat comprehensive manner?
a. Robert Fisher
b. John Maynard Keynes
c. Simon Kuznets
d. Arthur Pigou
Q. Consumption of capital good in the process of production is called as
a. Capital Consumption
b. Depreciation
c. Decay of Capital
d. None of the above
Q. Which one of the following includes ‘income of residents’?
a. GDP
b. NNP
c. SDP
d. None of the above
Q. Remittances made by NRIs to India in the context of national income accounting is called as
a. Remittance Income
b. NRI Income
c. Factor Payments
d. All of the above
Q. Who first introduced the concept of circular flow of income?
a. William Petty
b. Adam Smith
c. David Ricardo
d. Fancois Quesnay
Q. Which one in the following is a stock variable?
a. Income
b. Investment
c. Capital
d. Fiscal Deficit