Top 350+ Solved Micro Economics 1 MCQ Questions Answer
Q. By representing amounts of proceeds by all entrepreneurs along the Y axis and volumes of employment along the X-axis, we can draw--------curves.
a. Employment
b. Consumption and Savings
c. Revenue and employment
d. Aggregate supply and demand
Q. “Effective demand is different from aggregate demand”. This statement is:
a. True
b. False
c. Baseless
d. None of these
Q. In the Cambridge equation of M =KPR, the value of “K” is:
a. “V” in the Fisher’s Equation
b. 1/V
c. M/V
d. None of these
Q. Who had a different macro theory than the rest?
a. Adam Smith
b. David Ricardo
c. Malthus
d. J.B.Say
Q. ”Mr. Keynes and the Classics” is the title of the famous paper by :
a. Hansen
b. Hicks
c. Harrod
d. Haberler
Q. The quantity theory of money is primarily a theory of demand for money is stated by:
a. Marshall
b. Fisher
c. Keynes
d. Friedman
Q. In Classical theory, the equality between saving and investment is brought about by:
a. Income
b. Rate of interest
c. Consumption
d. Multiplier.
Q. Which one of the following is not correct:
a. MPC declines as income increases
b. MPC is positive but less than one
c. MPS is always positive
d. MPS declines as income increases
Q. Marginal propensity to consume means:
a. Inclination to conspicuous consumption
b. Low income group spending more
c. Rate of income spend on consumption
d. The rate of extra income that will be spent on consumption
Q. Human capital formation refers to:
a. The process of increasing the number of people
b. The process of physical growth of capital
c. The process of increasing knowledge, skills and capacities of all people
d. The process of providing more facilities to the people
Q. According to Keynesian analysis, consumption is a function of:
a. Permanent income
b. Current income
c. Estimated lifetime income
d. Previous income.