If every able bodied person who is willing to work at the prevailing wage rate is employed called _______.

(a)

Full employment

(b)

Under employment

(c)

Unemployment

(d)

Employment opportunity

Structural unemployment is a feature in a ________.

(a)

Static society

(b)

Socialist society

(c)

Dynamic society

(d)

Mixed economy

In disguised unemployment, the marginal productivity of labour is _________

(a)

Zero

(b)

One

(c)

Two

(d)

Positive

The main concern of the Classical Economic Theory is _______.

(a)

Under employment

(b)

Economy is always in the state of equilibrium

(c)

Demand creates its supply

(d)

Imperfect competition

J.B. Say is a _______.

(a)

Neo Classical Economist

(b)

Classical Economist

(c)

Modern Economist

(d)

New Economist

According to Keynes, which type of unemployment prevails in capitalist economy ?

(a)

Full employment

(b)

Voluntary unemployment

(c)

Involuntary unemployment

(d)

Under employment

The core of the classical theory of employment is_________.

(a)

Law of Diminishing Return

(b)

Law of Demand

(c)

Law of Markets

(d)

Law of Consumption

Keynes attributes unemployment to_______.

(a)

A lack of effective supply

(b)

A lock of effective demand

(c)

A lack of both

(d)

None of the above

_________ Flexibility brings equality between saving and investment

(a)

Demand

(b)

Supply

(c)

Capital

(d)

Rate of Interest

________ theory is a turning point in the development of modern economic theory.

(a)

Keynes’

(b)

Say’s

(c)

Classical

(d)

Employment

The basic concept used in Keynes Theory of Employment and Income is_____.

(a)

Aggregate demand

(b)

Aggregate supply

(c)

Effective demand

(d)

Marginal Propensity Consume

The component of aggregate demand is__________

(a)

Personal demand

(b)

Government expenditure

(c)

Only export

(d)

Only import

Aggregate supply is equal to ___________.

(a)

C + I + G

(b)

C + S + G + (x - m)

(c)

C + S + T + (x - m)

(d)

C + S + T + Rf

Keynes theory pursues to replace laissez faire by ______.

(a)

No government intervention

(b)

Maximum intervention

(c)

State intervention in certain situation

(d)

Private sector intervention

In Keynes theory of employment and income, ___________ is the basic cause of economic depression

(a)

Less production

(b)

More demand

(c)

Inelastic supply

(d)

Less aggregate demand in relation to productive capacity

Classical theory advocates_______

(a)

Balanced budget

(b)

Unbalanced budget

(c)

Surplus budget

(d)

Deficit budget

Keynes theory emphasized on________ equilibrium

(a)

Very short run

(b)

Short run

(c)

Very long run

(d)

Long run

According to classical theory, rate of interest is a reward for ______.

(a)

Investment

(b)

Demand

(c)

Capital

(d)

Saving

In Keynes theory , the demand for and supply of money are determined by ________

(a)

Rate of interest

(b)

Effective demand

(c)

Aggregate demand

(d)

Aggregate supply

Say’s law stressed the operation of________ in the economy

(a)

Induced price mechanism

(b)

Automatic price mechanism

(c)

Induced demand

(d)

Induced investment