Question 1

In the quantity theory of money, P and Y represent the price and quantity of:

Accepted Answer

A) all raw materials and natural resources sold in an economy 
B) all financial services sold in an economy. 
C) all durable capital (tractors, manufacturing equipment) purchased in the economy 
D) all finished goods and services sold in an economy 
A) all raw materials and natural resources sold in an economy 
B) all financial services sold in an economy. 
C) all durable capital (tractors, manufacturing equipment) purchased in the economy 
D) all finished goods and services sold in an economy D

Question 2

Adam Smith in his book, The Wealth of Nations, developed a theory about:

Accepted Answer

A) communism 
B) capitalism 
C) regulating foreign investment 
D) ensuring internal order 
A) communism 
B) capitalism 
C) regulating foreign investment 
D) ensuring internal order B

Question 3

Both sides of the quantity theory of money identity represent . *

Accepted Answer

A) Real GDP 
B) Inflation. 
C) Nominal GDP. 
D) The Money Supply. 
A) Real GDP 
B) Inflation. 
C) Nominal GDP. 
D) The Money Supply. C

Question 4

Who gives a welfare definition of economics?

Accepted Answer

A) Adam Smith 
B) Alfred Marshall 
C) Lionel Robbins 
D) Paul Samuelson 
A) Adam Smith 
B) Alfred Marshall 
C) Lionel Robbins 
D) Paul Samuelson

Question 5

Communist Manifesto was authored by:

Accepted Answer

A) Stalin 
B) Karl Marx 
C) Laski 
D) George Bernard Shah 
A) Stalin 
B) Karl Marx 
C) Laski 
D) George Bernard Shah

Question 6

Which of the following is NOT an economic theory of Ricardo's discussed in this article?

Accepted Answer

A) Economic Rent 
B) Comparative Advantage 
C) Division of Labor 
D) All of the concepts listed can be contributed 
A) Economic Rent 
B) Comparative Advantage 
C) Division of Labor 
D) All of the concepts listed can be contributed

Question 7

The concept Industrial Reserve Army is introduced by

Accepted Answer

A) Turgot 
B) Karl Marx 
C) Joan Robinson 
D) J.S. Mill 
A) Turgot 
B) Karl Marx 
C) Joan Robinson 
D) J.S. Mill

Question 8

The main focus of Karl Marx's work was on which of the following social elements?

Accepted Answer

A) The plight of the working class 
B) Economics of the upper class 
C) Worker\s conditions in factories 
D) Gender equality 
A) The plight of the working class 
B) Economics of the upper class 
C) Worker\s conditions in factories 
D) Gender equality

Question 9

The quantity theory of money is expressed by the identity equation

Accepted Answer

A) MV/PY 
B) MV=Y 
C) M= PYV 
D) MV=PY 
A) MV/PY 
B) MV=Y 
C) M= PYV 
D) MV=PY

Question 10

Walras' law implies that if there are N markets, we only need to find equilibrium prices in

Accepted Answer

A) N-1 markets. 
B) N-2 markets. 
C) all markets 
D) N-3 markets 
A) N-1 markets. 
B) N-2 markets. 
C) all markets 
D) N-3 markets

Question 11

Adam Smith begins with the Wealth of Nations with an example of a pin factory in order to

Accepted Answer

A) the accumulation of capital 
B) the division of labor 
C) the perils of government regulation 
D) All of the above 
A) the accumulation of capital 
B) the division of labor 
C) the perils of government regulation 
D) All of the above

Question 12

The Classical theory did not provide any coherent theory of ------

Accepted Answer

A) Income distribution 
B) Rent Thoery 
C) Labor value theory 
D) Profit 
A) Income distribution 
B) Rent Thoery 
C) Labor value theory 
D) Profit

Question 13

According to Ricardo, as an economy grows, the-------------------are the only group that would benefit.

Accepted Answer

A) Workers 
B) Land-owners 
C) Businessmen 
D) None of the above 
A) Workers 
B) Land-owners 
C) Businessmen 
D) None of the above

Question 14

Ricardo Theory Of Rent is based on ------ reasoning

Accepted Answer

A) Deductive 
B) Empirical 
C) illogical 
D) Inductive 
A) Deductive 
B) Empirical 
C) illogical 
D) Inductive

Question 15

Adam Smith begins with the Wealth of Nations with an example of a pin factory in order to

Accepted Answer

A) the accumulation of capital 
B) the division of labor 
C) the perils of government 
D) All of the above 
A) the accumulation of capital 
B) the division of labor 
C) the perils of government 
D) All of the above

Question 16

According to Ricardo, as an economy grows, the ----------------are the only group that would benefit.

Accepted Answer

A) Workers 
B) Land-owners 
C) Bussiness Man 
D) None of the above 
A) Workers 
B) Land-owners 
C) Bussiness Man 
D) None of the above

Question 17

If you want a 4% real interest rate and the expected inflation rate is 3%, you should set the

Accepted Answer

A) 1% 
B) 4% 
C) 7% 
D) 20% 
A) 1% 
B) 4% 
C) 7% 
D) 20%

Question 18

Which two philosophers developed the principal concept of Marxism?

Accepted Answer

A) Marx and Engels 
B) Marx and Aristotle 
C) Marx and Adam 
D) Plato and Aristotle 
A) Marx and Engels 
B) Marx and Aristotle 
C) Marx and Adam 
D) Plato and Aristotle

Question 19

According the law of diminishing returns:

Accepted Answer

A) The marginal product of a variable factor eventually falls as more units of it are added to a fixed factor 
B) Marginal utility falls as more units of a product are consumed 
C) The total product falls as more units of a variable factor are added to a fixed factor 
D) The marginal product eventually increases as more units of a variable factor are added to a fixed factor 
A) The marginal product of a variable factor eventually falls as more units of it are added to a fixed factor 
B) Marginal utility falls as more units of a product are consumed 
C) The total product falls as more units of a variable factor are added to a fixed factor 
D) The marginal product eventually increases as more units of a variable factor are added to a fixed factor

Question 20

According the law of diminishing returns:

Accepted Answer

A) The marginal product of a variable factor 
B) Marginal utility falls as more units of a product are consumed 
C) The total product falls as more units of a variable factor 
D) The marginal product eventually increases as more 
A) The marginal product of a variable factor 
B) Marginal utility falls as more units of a product are consumed 
C) The total product falls as more units of a variable factor 
D) The marginal product eventually increases as more

Exam 1: Economic Theories and Concepts

In the quantity theory of money, P and Y represent the price and quantity of:

Adam Smith in his book, The Wealth of Nations, developed a theory about:

Both sides of the quantity theory of money identity represent . *

Who gives a welfare definition of economics?

Communist Manifesto was authored by:

Which of the following is NOT an economic theory of Ricardo's discussed in this article?

The concept Industrial Reserve Army is introduced by

The main focus of Karl Marx's work was on which of the following social elements?

The quantity theory of money is expressed by the identity equation

Walras' law implies that if there are N markets, we only need to find equilibrium prices in

Adam Smith begins with the Wealth of Nations with an example of a pin factory in order to

The Classical theory did not provide any coherent theory of ------

According to Ricardo, as an economy grows, the-------------------are the only group that would benefit.

Ricardo Theory Of Rent is based on ------ reasoning

Adam Smith begins with the Wealth of Nations with an example of a pin factory in order to

According to Ricardo, as an economy grows, the ----------------are the only group that would benefit.

If you want a 4% real interest rate and the expected inflation rate is 3%, you should set the

Which two philosophers developed the principal concept of Marxism?

According the law of diminishing returns:

According the law of diminishing returns:

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