Chapter 3: Theories of Employment and IncomeMarch 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 attributes unemployment to ………….. A lack of effective supply A lock of effective demand A lack of both None of the above None 2. The core of the classical theory of employment is ………… Law of Diminishing Return Law of Demand Law of Markets Law of Consumption None 3. …………… theory is a turning point in the development of modern economic theory. Keynes’ Say’s Classical Employment None 4. In disguised unemployment, the marginal productivity of labour is ….. Zero One Two Positive None 5. According to Keynes, which type of unemployment prevails in capitalist economy ? Full employment Voluntary unemployment Involuntary unemployment Under employment None 6. 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 7. J.B. Say is a ……………………. Neo Classical Economist Classical Economist Modern Economist New Economist None 8. ………. Flexibility brings equality between saving and investment. Demand Supply Capital Interest None 9. 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 10. Structural unemployment is a feature in a ……….. Static society Socialist society Dynamic society Mixed economy None 11. Classical theory advocates …… Balanced budget Unbalanced budget Surplus budget Deficit budget None 12. In Keynes theory , the demand for and supply of money are determined by …. Rate of interest Effective demand Aggregate demand Aggregate supply None 13. According to classical theory, rate of interest is a reward for …… Investment Demand Capital Saving None 14. Aggregate supply is equal to …………. C + I + G C + S + G + (x-m) C + S + T + (x-m) C + S + T + Rf None 15. Say’s law stressed the operation of …………. in the economy. Induced price mechanism Automatic price mechanism Induced demand Induced investment None 16. Keynes theory emphasized on …… equilibrium. Very short run Short run Very long run Long run None 17. 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 18. The component of aggregate demand is …………. Personal demand Government expenditure Only export Only import None 19. Keynes theory pursues to replace laissez faire by ………… No government intervention Maximum intervention State intervention in certain situation Private sector intervention None 20. The basic concept used in Keynes Theory of Employment and Income is……………. Aggregate demand Aggregate supply Effective demand Marginal Propensity Consume None Time's upRelated Posts:Chapter 2: National IncomeChapter 13 : Concept Of Market and MarketerChapter 14 : Marketing and Marketing MixChapter 20 : Liberalization, Privatization and Globalization
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