Semester 2 BBA Maceroeconomics MCQ's
(A) Adam Smith
(B) John Maynard Keynes
(C) F. Hayek
(D) Samuelson
Q.2. Expenditure incurred on consumer goods is called?
(A) Consumption
(B) investment
(C) saving
(D) None of the above
Q.3. Public investment is made with a welfare motive.
True
False
Q.4. The spending money on capital goods is called:
(A) consumption
(B) investment
(C) saving
(D) None of the above
Q.5. If MPC falls, Multiplier
(A) remains stables
(B) rises
(C) also falls
(D) None of the above
Q.6. The private investment is made with?
(A) Welfare motive
(B) Profit motive
(C) All of the above
(D) None of above
Q.7. Automatic adjustment is an assumption of?
(A) Keynesian theory
(B) classical theory
Q.8. Laissez-faire economics refers to:
(A) a term denoting economic transactions carried out by the State/government
(B) economic transactions in private parties where there is no intervention by the State/government
(C) a branch of socialism focusing on welfare economics
(D) None of the above
Q.9. Supply creates its own demand is known as
(A) Say's law
(B) Keynes law
(C) None of the above
Q.10. Supply price is the expected replacement cost of a machine
True
False
Q.11. If MPC rises, Multiplier
(A) falls
(B) Remains constant
(C) Also rises
(D) None of the above
Q.12. Government interference was opposed by which theory?
(A) Classical theory
(B) Keynesian theory
(C) None of the above
Q.13. The relationship between MEC and investment is?
(A) Positive
(B) Negative
(C) None Of the above
Q.14. The value of multiplier depends upon
(A) MPC
(B) MEC
(C) None of the above
Q.15. A situation when people are engaged in jobs but they do not get these jobs according to their capabilities, efficiency and qualifications, it is called:
(A) Employment
(B) Full Employment
(C) Under Employment
(D) Unemployment
Q.16. The classical theory of employment rules out the possibility of unemployment in a free market economy.
True
False
Q.17. Keynesian theory of employment is based on the concept
(A) Aggregate Demand
(B) Aggregate Supply
(C) Aggregate Demand and Supply both
(D) None of the above
Q.18. Induced investment is expenditure both on fixed assets and on the stocks that are required
if the economy is to be able to produce a bigger output as aggregate demand rises.
True
False
Q.19. if MPC is positive, with increase in income consumption
(A) Increase
(B) Decreases
(C) none of the above
Q.20. Does the real investment generate productive capacity is an economy or not?
(A) Yes
(B) No
(C) Partially Yes
(D) Partially No
Q.21. As per classical approach, when savings are equal to investment then:
(A) AD=AS
(B) AD>AS
(C) AD<AS
(D) AD is maximum
Q.22. Classical theory has talked about:
(A) Full employment level
(B) Underemployment level
(C) Unemployment Level
(D) Minimum employment
Q.23. C+I= C+S represents the situation of :
(A) equilibrium
(B) unrest
(C) full employment
(D) underemployment
Q.24. As per keynes hypothesis when income rises, consumption also rises, but consumption
(A) rises less than income
(B) rises more than income
(C) equals to income
(D) Equal to savings
Q.25. Which is the right income expenditure identity?
(A) Y+C+S+T
(B) Y+C+S+G
(C) Y+C+I+G+NX
(D) Y+C
**All The Best**
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