Top 350+ Solved Micro Economics 1 MCQ Questions Answer
Q. Which of the following is Keynesian saving function?
a. S = f(i)
b. S = f(P)
c. S = f (Y)
d. S = f (W)
Q. Usually an IS curve is a -------line.
a. Vertical
b. Downward Slopping
c. Horizontal
d. Upward slopping
Q. When consumption and income are equal, saving is ------------
a. Negative
b. Positive
c. Zero
d. Increasing
Q. When of the following is correct:
a. 1/MPS = value of the multiplier
b. 1/MPS = Accelerator co-efficient
c. 1/MPS = MEC
d. None of these
Q. Value of money:
a. Is inversely related to the price level
b. Is directly related to the price level
c. Is independent of the price level
d. None of these
Q. The major primary function of money in modern Economics is to serve as:
a. A store of value
b. A medium of exchange
c. A transfer of value
d. A standard fordeferred payments
Q. 1- C/Y is defined as:
a. Average propensity to consume
b. Marginal propensity co consume
c. Average propensity to save
d. Marginal propensity to save
Q. Say’s Law of market says:
a. Demand creates supply
b. Supply creates demand
c. Income generates demand
d. Savings create demand in the market.
Q. The curve showing the possibilities of production of desired good is known as:
a. Indifference curve
b. Production possibility curve
c. Revealed preference curve
d. None of these
Q. Which one of the following definition of Economics is associated with the name of Lionel Robbins?
a. Welfare definition
b. Scarcity definition
c. Growth definition
d. Wealth definition
Q. In a free enterprise economy, the problems of what, how and for whom to produce are solved by :
a. A Planning Committee
b. The Price mechanism
c. The Planning Commission
d. None of these.
Q. Who considered Political Economy as “an enquiry into the nature and causes of the wealth of nations”?
a. Adam Smith
b. J.Say
c. Marshall
d. Keynes
Q. Which of the following definitions of Economics include the economic concept of ‘scales of Preferences’?
a. Wealth definition
b. Welfare definition
c. Scarcity definition
d. Growth definition