Theories of Output and Employment MCQ

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Theories of Output and Employment MCQ

1. Excess demand for money, according to Say’s law in the Economy:

A. Is greater

B. Is very less

C. Is equal to zero

D. There is no relationship between excess demand for money and Say’s Law

Answer: –

D. There is no relationship between excess demand for money and Say’s Law

2. Which of the following is not an assumption of classical theory?

A. Price flexibility

B. Unemployment

C. Say’s law

D. Neutrality of money

Answer: –

B. Unemployment

3. In classical theory the equality between saving and investment is brought about by:

A. Rate of interest

B. Income

C. Consumption

D. Multiplier

Answer: –

A. Rate of interest

4. The normal condition of a capitalist economy in classical theory is:

A. Underemployment

B. Full employment

C. General unemployment

D. Frictional unemployment

Answer: –

B. Full employment

5. In classical theory of employment, there is the possibility of:

A. Voluntary unemployment

B. No unemployment

C. Involuntary unemployment

D. Disguised unemployment

Answer: –

A. Voluntary unemployment

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6. “Supply creates its own demand “is a law of:

A. Investment

B. Inflation

C. Consumption

D. Market

Answer: –

D. Market

7. According to classical economists, variations in savings are due to:

A. Level of investment

B. Rate of interest

C. Level of employment

D. None of the above

Answer: –

B. Rate of interest

8. Supply creates its own demand is the Basis of:

A. Classical economics

B. Keynesian economics

C. Monetarism

D. None of these

Answer: –

A. Classical economics

9. Which policy is effective in the Keynesian range?

A. Monetary policy

B. Fiscal policy

C. Incomes policy

D. None of these

Answer: –

B. Fiscal policy

10. When output exceeds spending:

A. There is unsold output, and level of output will fall

B. There is unsold output, and level of output will rise

C. There is unsold output, and level of spending will rise

D. There is no unsold output since the level of spending will rise

Answer: –

A. There is unsold output, and level of output will fallAlso Read :-

29/01/2022 0 comment

classical theory of output and employment

( Best 30+ ) Theories of Output and Employment MCQ

Theories of Output and Employment MCQ

Theories of Output and Employment MCQ

1. Excess demand for money, according to Say’s law in the Economy:

2. Which of the following is not an assumption of classical theory?

3. In classical theory the equality between saving and investment is brought about by:

4. The normal condition of a capitalist economy in classical theory is:

5. In classical theory of employment, there is the possibility of:

6. “Supply creates its own demand “is a law of:

7. According to classical economists, variations in savings are due to:

8. Supply creates its own demand is the Basis of:

9. Which policy is effective in the Keynesian range?

10. When output exceeds spending: