Chapter 3: Theories of Employment and Income March 11, 2024 Maven Leave a Comment Welcome to the Chapter 3: Theories of Employment and Income Quiz! This quiz is based on the book back questions. Name Email 1. Keynes theory pursues to replace laissez faire by ………… No government intervention Maximum intervention State intervention in certain situation Private sector intervention None 2. The basic concept used in Keynes Theory of Employment and Income is……………. Aggregate demand Aggregate supply Effective demand Marginal Propensity Consume None 3. Classical theory advocates …… Balanced budget Unbalanced budget Surplus budget Deficit budget None 4. Say’s law stressed the operation of …………. in the economy. Induced price mechanism Automatic price mechanism Induced demand Induced investment None 5. Keynes theory emphasized on …… equilibrium. Very short run Short run Very long run Long run None 6. In Keynes theory , the demand for and supply of money are determined by …. Rate of interest Effective demand Aggregate demand Aggregate supply None 7. In Keynes theory of employment and income, ………….. is the basic cause of economic depression. Less production More demand Inelastic supply Less aggregate demand in relation to productive capacity None 8. The component of aggregate demand is …………. Personal demand Government expenditure Only export Only import None 9. Aggregate supply is equal to …………. C + I + G C + S + G + (x-m) C + S + T + (x-m) C + S + T + Rf None 10. According to classical theory, rate of interest is a reward for …… Investment Demand Capital Saving None 11. J.B. Say is a ……………………. Neo Classical Economist Classical Economist Modern Economist New Economist None 12. In disguised unemployment, the marginal productivity of labour is ….. Zero One Two Positive None 13. According to Keynes, which type of unemployment prevails in capitalist economy ? Full employment Voluntary unemployment Involuntary unemployment Under employment None 14. The main concention of the Classical Economic Theory is …….. Under employment Economy is always in the state of equilibrium Demand creates its supply Imperfect competition None 15. ………. Flexibility brings equality between saving and investment. Demand Supply Capital Interest None 16. The core of the classical theory of employment is ………… Law of Diminishing Return Law of Demand Law of Markets Law of Consumption None 17. Every able bodied person who is willing to work at the prevailing wage rate is employed called as ………. Full employment Under employment Unemployment Employment opportunity None 18. Structural unemployment is a feature in a ……….. Static society Socialist society Dynamic society Mixed economy None 19. Keynes attributes unemployment to ………….. A lack of effective supply A lock of effective demand A lack of both None of the above None 20. …………… theory is a turning point in the development of modern economic theory. Keynes’ Say’s Classical Employment None Time's up Related Posts:Chapter 2: National IncomeChapter 4: Cost and Revenue AnalysisChapter 5: Market Structure and PricingChapter 8: Indian Economy Before and After Independence
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