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Theories of Employment and Income 1 Mark Book Back Question Paper With Answer Key

12th Standard

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Economics

Time : 00:20:00 Hrs
Total Marks : 20

    Multiple Choice Question

    20 x 1 = 20
  1. 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

  2. Structural unemployment is a feature in a ________.

    (a)

    Static society

    (b)

    Socialist society

    (c)

    Dynamic society

    (d)

    Mixed economy

  3. In disguised unemployment, the marginal productivity of labour is _________

    (a)

    Zero

    (b)

    One

    (c)

    Two

    (d)

    Positive

  4. 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

  5. J.B. Say is a _______.

    (a)

    Neo Classical Economist

    (b)

    Classical Economist

    (c)

    Modern Economist

    (d)

    New Economist

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

    (a)

    Full employment

    (b)

    Voluntary unemployment

    (c)

    Involuntary unemployment

    (d)

    Under employment

  7. 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

  8. 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

  9. _________ Flexibility brings equality between saving and investment

    (a)

    Demand

    (b)

    Supply

    (c)

    Capital

    (d)

    Rate of Interest

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

    (a)

    Keynes’

    (b)

    Say’s

    (c)

    Classical

    (d)

    Employment

  11. 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

  12. The component of aggregate demand is__________

    (a)

    Personal demand

    (b)

    Government expenditure

    (c)

    Only export

    (d)

    Only import

  13. 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

  14. 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

  15. 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

  16. Classical theory advocates_______

    (a)

    Balanced budget

    (b)

    Unbalanced budget

    (c)

    Surplus budget

    (d)

    Deficit budget

  17. Keynes theory emphasized on________ equilibrium

    (a)

    Very short run

    (b)

    Short run

    (c)

    Very long run

    (d)

    Long run

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

    (a)

    Investment

    (b)

    Demand

    (c)

    Capital

    (d)

    Saving

  19. 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

  20. Say’s law stressed the operation of________ in the economy

    (a)

    Induced price mechanism

    (b)

    Automatic price mechanism

    (c)

    Induced demand

    (d)

    Induced investment

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