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

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

Keynes theory emphasized on________ equilibrium

(a)

Very short run

(b)

Short run

(c)

Very long run

(d)

Long run

Rate of interest is a stock

(a)

Socialism

(b)

Keynesianism

(c)

Classicism

(d)

All the above

A person receives his income from ______________

(a)

production

(b)

purchase

(c)

sales

(d)

None of the above

Keynes theory of employment and income is the principle of _____________

(a)

long run

(b)

short run

(c)

capital

(d)

production

Say's law of market is the core of the __________ theory of employment.

(a)

classical

(b)

economical

(c)

environmental

(d)

proportional

______________ returns takes place as more workers are employed.

(a)

Law of diminishing marginal

(b)

Law of equi demand

(c)

Law of demand

(d)

None of the above

________________ started functioning from 1st July 1963.

(a)

ARDC

(b)

IMF

(c)

RBI

(d)

SBI

Assertion: The concept of full employment generally refers to full employment of labour force of a country
Reason: Every economy in the world aims at attaining the level of full employment equilibrium where all its available resources are fully and efficiently employed to achieve maximum level of output.

(a)

Both (A) and (R) are true and (R) is the correct explanation of (A)

(b)

Both (A) and (R) are true, but (R) is not the correct explanation of (A)

(c)

(A) is true, but (R) is false

(d)

(A) is false, but (R) is true.

Find the unsuitable example for Seasonal unemployment

(a)

ice cream industry

(b)

doctors

(c)

farmers

(d)

farmers

What is considered as the starting point of Keynes theory of employment and income?

(a)

The principle of effective demand

(b)

The principle of effective supply

(c)

The principle of effective equilibrium

(d)

Say’s Market Law

Which of the following is not an obstacle to full employment in classical theory?

(a)

Excess of saving over investment

(b)

Liquidity trap

(c)

Price rigidity

(d)

Wage Flexibility

In classical system which of the following keeps the economy at full employment

(a)

Level of saving

(b)

Increase in money supply

(c)

Adjustment in investment

(d)

Adjustment in money wages

In the Keynesian two sector economy, AD<AS, then

(a)

S=I

(b)

S>I

(c)

S<I

(d)

S=0

Which of the following are true of disguised unemployment?
I. It represents potential savings.
II. The marginal productivity of labour is zero or extremely low.
III. It is due to the existence of joint family system.
IV. It is confined to the rural areas.

(a)

II and IV

(b)

III and IV

(c)

I, II and III

(d)

I, II, III and IV

Assertion: In developing countries like India, the nature of unemployment is different from that of developed countries.
Reason: In developed countries, the unemployment is purely temporary or cyclical or frictional.

(a)

Both A and R are true and R is the correct explanation of A

(b)

Both A and R are true but R is not the correct explanation of A

(c)

A is true but R is false

(d)

A is false but R is true

Assertion: The slope of the aggregate supply curve depends on the relation between the employment and productivity.
Reason: The capital stock is often fixed and hence the law of diminishing marginal returns takes place as more workers are employed.

(a)

Both A and R are true and R is the correct explanation of A

(b)

Both A and R are true but R is not the correct explanation of A

(c)

A is true but R is false

(d)

A is false but R is true

In the classical model:

(a)

flexible markets will keep the economy at a full-employment level of spending and output

(b)

both households ’saving activity and firms’ investment activity are quite sensitive to changes in the interest rate.

(c)

adjustments in the interest rates quickly correct any imbalances between saving and investment

(d)

all of the above