( Best 30+ ) Theories of Output and Employment MCQ

by Mr. DJ

Theories of Output and Employment MCQ

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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:

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

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

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

A. Rate of interest

B. Income

C. Consumption

D. Multiplier

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

A. Underemployment

B. Full employment

C. General unemployment

D. Frictional unemployment

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

A. Voluntary unemployment

B. No unemployment

C. Involuntary unemployment

D. Disguised unemployment

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

A. Investment

B. Inflation

C. Consumption

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

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

A. Classical economics

B. Keynesian economics

C. Monetarism

D. None of these

9. Which policy is effective in the Keynesian range?

A. Monetary policy

B. Fiscal policy

C. Incomes policy

D. None of these

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

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