Question 1

Alfred Marshall formalized and then popularized the analytical technique known as:

Accepted Answer

A)  general equilibrium analysis
B)  felicific calculus.
C)  partial equilibrium analysis.
D)  differential equations. C

Question 2

Which of the following is the nucleus of the Keynesian theory of employment?

Accepted Answer

A)  the theory of consumption function
B)  the principle of effective demand
C)  marginal efficiency of capital
D)  none of these B

Question 3

The idea that governmental redistributions of income or wealth will ultimately have no effect on how disparate income and wealth are distributed is sometimes called:

Accepted Answer

A)  say's law of markets.
B)  the law of comparative advantage.
C)  keynes' law.
D)  pareto's law. D

Question 4

According to Keynes consumption is a function of :

Accepted Answer

A)  income
B)  saving
C)  employment
D)  none of these

Question 5

The change in income as a result of change in is investment called by Keynes as:

Accepted Answer

A)  multiplier
B)  accelerator
C)  marginal efficiency of capital
D)  none of these

Question 6

The multiplier is the reciprocal of

Accepted Answer

A)  marginal propensity to save
B)  marginal propensity to consume
C)  both mpc and mps
D)  none of the above

Question 7

The welfare of all means:

Accepted Answer

A)  swaraj
B)  sarvodaya
C)  brahmacharya
D)  swadeshi

Question 8

Which of the following is not among Rostow's stages of growth

Accepted Answer

A)  the traditional society
B)  the age of low mass consumption
C)  the take-off
D)  the drive to maturity

Question 9

The Lausanne School is to Léon Walras as the Austrian School is to:

Accepted Answer

A)  vilfredo pareto.
B)  carl menger.
C)  enrico barone.
D)  david hume.

Question 10

The desire of people to keep money with them is called by Keynes as:

Accepted Answer

A)  investment
B)  saving
C)  liquidity preference
D)  consumption

Question 11

Marginal efficiency of capital is :

Accepted Answer

A)  the expected rate of profit from new investment
B)  the expected rate of profit from past investment
C)  the expected rate of profit from saving
D)  none of these.

Question 12

The mew classical economics is based on

Accepted Answer

A)  market clearing
B)  non-market clearing
C)  both a and b
D)  none of these

Question 13

The author of 'Arthashastra' is

Accepted Answer

A)  kautilya
B)  bana bhatta
C)  thiruvalluvar
D)  kabir das

Question 14

Vilfredo Pareto's very deductive mathematical models and proofs made the market seem quite mechanistic, an approach most notably rejected by his slightly older contemporary:

Accepted Answer

A)  karl marx.
B)  léon walras.
C)  alfred marshall.
D)  william stanley jevons.

Question 15

According to Keynes marginal efficiency of capital has a tendency to :

Accepted Answer

A)  increase
B)  decrease
C)  remains constant
D)  none of these

Question 16

Explicit treatments of marginal analysis were least central to the writings of:

Accepted Answer

A)  william stanley jevons.
B)  léon walras.
C)  john stuart. mill.
D)  carl menger.

Question 17

The economist who spent twenty years cautiously trying out his ideas on his students before finally presenting them to the world near the close of the 19th century was: ]

Accepted Answer

A)  william stanley jevons.
B)  henry george.
C)  léon walras.
D)  alfred marshall

Question 18

The study of the effect of consumption on investment is called

Accepted Answer

A)  accelerator
B)  multiplier
C)  leverage effect
D)  none of these

Question 19

The two important determinants of investment according to Keynes are:

Accepted Answer

A)  interest rate and marginal efficiency of capital
B)  saving and interest rate
C)  interest rate and consumption
D)  none of these

Question 20

Marginalism and the idea that pricing reflects marginal utility and demand was a movement away from:

Accepted Answer

A)  the quantity theory of money.
B)  thelabor theory of value.
C)  mercantilism.
D)  marx's business cycle theory.

Exam 2: Economic Thories and Thinkers