Top 350+ Solved Micro Economics 1 MCQ Questions Answer
Q. Which of the following equation is wrong?
a. National Income = Effective demand
b. National Income = GNP
c. National Income = C + I
d. National Income = C + S
Q. The essential condition to act as money is:
a. It is homogeneous
b. It is legal tender
c. It is backed by gold
d. It is generally acceptable
Q. Which of the following is not a component of Income method to GNP?
a. Wages and salaries
b. Interest
c. Depreciation
d. Net foreign investment
Q. -------------is associated with the theory of multiplier:
a. Adam Smith
b. Malthus
c. Malthus
d. Keynes
Q. The MPC has a value:
a. Greater than one but less than two
b. Less than one but greater than zero
c. Greater than two
d. None of these
Q. An official reduction in the value of home currency in terms of foreign currency is known as:
a. Revaluation
b. Devaluation
c. Depreciation
d. Appreciation
Q. Wage cut as a solution of unemployment in classical theory is suggested by:
a. J
b. Say A.C. Pigou
c. Keynes
d. Marshall
Q. The word macro was first used in Economics by:
a. Keynes
b. Ragner Frisch
c. J.R. Hicks
d. J.B. Say
Q. Personal Disposable income is:
a. Always equal to personal income
b. Always more than personal income
c. Equal to personal income minus direct taxes
d. Equal to personal income minus indirect taxes
Q. When the method of Statics is called upon to study a changing process, it is referred to as the method of:
a. Statics
b. Dynamics
c. Comparative statics
d. None of these
Q. In Classical theory of employment, there is the possibility of:
a. No unemployment
b. Voluntary unemployment
c. Disguised unemployment
d. Involuntary unemployment
Q. Leakages are the factors which:
a. Keep the power of multiplier stable
b. Increase the power of multiplier
c. Reduce the power of multiplier
d. Reduce the power multiplier to zero.
Q. The phenomenon of increase in money wages that leads to increases in unemployment is shown by:
a. Speculative demand curve
b. Phillip’s curve
c. Aggregate supply
d. Income consumption curve