(A) The best government is the least government
(B) Flexible wages and prices ensure full employment
(C) Self-correction is the best way to eliminate unemployment
(D) Economic instability is best corrected through the interference of
Government
Category: Economics Mcqs
Users will find here Economics Mcqs for NTS, CSS, PMS, PPSC, FPSC, KPPSC, AJKPSC, BPSC, PTS, SPSC, Lecturer and all other types of Competitive Exams and Interviews. Economics students can prepare their Economics Portion for all test from here.
Aggregate demand curve is downward sloping due to the:
(A) Interest rate effect
(B) Wealth effect
(C) International purchasing power effect
(D) All of the given option
Keynesian economics rejected the classical assumption that:
(A) Supply creates its own demand
(B) Prices and wages are inflexible
(C) Self-correction takes a long time
(D) Consumption expenditures depend on disposable income
Keynesian economics was largely developed to address the economic problems of the:
(A) Stagflation of the 1970s
(B) Great Depression of the 1930s
(C) English industrial revolution of the late 1700s
(D) American industrial revolution of the late 1800s
Classical economics was replaced as the dominant theory of macroeconomic analysis by:
(A) Monetarism
(B) Rational expectations
(C) Keynesian economics
(D) Neoclassical economics
According to classical economics, the economy was unlikely to experience:
(A) Full employment
(B) Flexible wages and prices
(C) Equality between saving and investment
(D) High rates of unemployment
Say’s Law is a proposition underlying classical economics stating that:
(A) Supply creates its own demand
(B) Leakages are greater than injections
(C) Unemployment is a common condition
(D) Consumption expenditures are a function of disposable income
The origins of classical economics can be traced to the work of:
(A) Karl Marx
(B) Milton Friedman
(C) John Maynard Keynes
(D) Adam Smith