Q.1. who among the following belongs to classicals?
Adam Smith
David Ricardo
Malthus
JB Say
All
Q.2. who gave the concept of AD and AS?
Keynes
Ricardo
Adam Smith
All the above
Q.3. There exists perfect competition in keynes theory. Is the statement correct?
Yes
No
partly yes
Partly no
Q.4. Classical thinking was challenged by:
JM keynes
Baumol
Todaro
smith
Q.5. Classical believe that saving is always equal to investment
TRUE
FALSE
Q.6. Aggregate Supply =
C+S
C+I
Q.7. Total spending = C+1
Q.8. Equality between AD and AS is
demand
effective demand
unaffected demand
All the above
Q.9. The normal condition of a capitalist economy in classical theory is frictional
underemployment
unemployment
full employment
Frictional unemployment
Q.10. In classical theory the equality between saving and investment is brought about by:
Rate of interest
Consumption
Income
multiplier
Q.11. In classical theory the level of employment is a function of:
Price level
Money wage rate
quantity of money
Real wage rate
Q.12. Which of the following is not an obstacle to full employment in classical theory?
Excess of saving over investment
Liquidity Trap
Price Rigidity
Wage Flexibility
Q.13. The classical economists believed that the demand for labour is a function of
Total Money Wage
Money wage Rate
Total Real wage
Real wage Rate
Q14. In classical theory of employment, there is the possibility of
Voluntary unemployment
No unemployment
Involuntary Unemployment
Disguised Unemployment
Q.15. In Keynesian model of income determination autonomous investment occurs due to:
Change in income
Change in employment
Change in profit
Change in social welfare programmes
Q.16. The formula for calculating simple multiplier is
1/1-MPC
1/MPC=MPS
1/1-MPS
1/MPC+MPS
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