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

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

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

(a)

Keynes’

(b)

Say’s

(c)

Classical

(d)

Employment

Interest flexibility brings equality between __________

(a)

Income and consumption

(b)

Saving and investment

(c)

Demand and supply

(d)

Labour and capital

'Full employments the absence of involuntary unemployment' was said by __________.

(a)

J.B. Say

(b)

Ricardo

(c)

J.M. Keynes

(d)

Adam smith

Full employment as "that level of employment at which any further increase in spending would resort in an inflationary spiral of wages and prices" who quote this above concept.

(a)

J.M. Keynes

(b)

Lerner

(c)

J.B. Say

(d)

All the above

Rate of interest is a stock

(a)

Socialism

(b)

Keynesianism

(c)

Classicism

(d)

All the above

'Rate of interest is a reward for parting with liquidity' - Its belongs to which theory.

(a)

Keynesianism

(b)

Socialism

(c)

Both 'a' and 'b'

(d)

Classicism

Every economy in the world aims at attaining the level of _________

(a)

Full employment

(b)

Unemployment

(c)

Seasonal unemployment

(d)

Educated unemployment

A person receives his income from ______________

(a)

production

(b)

purchase

(c)

sales

(d)

None of the above

Total production equals to __________

(a)

total income

(b)

gross income

(c)

net income

(d)

total sales

Keynes theory of employment and income is the principle of _____________

(a)

long run

(b)

short run

(c)

capital

(d)

production

Full employment

(1)

Lerner

Cyclical Unemployment

(2)

ASF

AD

(3)

Y = C + I = Output = Employment

Keynes' book

(4)

Caused by deficiency of effective demand

Aggregate supply function

(5)

The general theory of employment interest and money