Basics of Economics MCQs : This section focuses on the "Basics of Economics". These Multiple Choice Questions (MCQs) should be practiced to improve the Basics of Economics skills required for various interviews (campus interview, walk-in interview, company interview), placement, entrance exam and other competitive examinations.
Question 1
______________ cost can never become zero.
A. variable cost
B. fixed cost
C. marginal cost
D. average cost
Question 2
_____ is an example of secondary input
A. land
B. labour
C. capital
D. raw material
Question 3
_____ is not an example of free good
A. sunlight
B. car
C. petrol
D. computer
Question 4
‘Law of Market’ is attributed to:
A. j.s. mill
B. j.b. say
C. alfred marshall
D. a.c. pigou
Question 5
‘The General Theory’, was published in :
A. 1776
B. 1890
C. 1936
D. 1950
Question 6
“In the long run, we are all dead”. Who said this?
A. keynes
B. adam smith
C. karl marx
D. david ricardo
Question 7
“Supply creates its own demand” is called:
A. law of supply
B. law of market
C. law of demand
D. law of elasticity
Question 8
“The starting point of all economic activity is the existence of humanwants” Who said this?
A. adam smith
B. selligman
C. ricardo
D. alfred marshall
Question 9
1- MPC is called:
A. apc
B. aps
C. mpc
D. mps
Question 10
A fall in the market demand, supply remaining the same results in
A. increase in equilibrium price
B. increase in equilibrium quantity
C. increase in equilibrium price and decrease in equilibrium quantity
D. both equilibrium price and quantity falls
Question 11
A rational producer will select his level of production in which stage ofthe law of variable proportions
A. stage i
B. stage ii
C. stage iii
D. either stage i or stage ii
Question 12
A simplified representation of a real situation is called:
A. theory
B. hypotheses
C. evidence
D. economic model
Question 13
According to Classicals, full employment is a:
A. rare phenomenon
B. normal phenomenon
C. abnormal phenomenon
D. none of these
Question 14
According to Keynes, investment is a function of:
A. rate of interest
B. rate of profit
C. rate of mei
D. mei and rate of interest
Question 15
According to Keynes, unemployment is due to:
A. deficiency of capital
B. deficiency of labour
C. deficiency of education
D. deficiency in effective demand
Question 16
According to Keynes, wages and prices are:
A. rigid
B. flexible
C. variable
D. automatic
Question 17
According to the Classical economists, general over production is:
A. possible
B. impossible
C. both
D. none
Question 18
According to the Classical economists, savings and investments are:
A. always unequal
B. always equal
C. never equal
D. sometimes equal
Question 19
According to the Classicals, investment is a function of:
A. saving
B. income
C. employment
D. rate of interest
Question 20
An important issue of macro economics is the determination of:
A. consumption
B. production
C. utility
D. income and employment
Question 21
An increase in market demand, supply remaining the same results in
A. decrease in equilibrium price
B. decrease in equilibrium quantity
C. decrease in equilibrium price and increase in equilibrium quantity
D. both equilibrium price and quantity rises
Question 22
APC + APS is equal to:
A. 0
B. >0
C. 1
D. <0
Question 23
As income increases consumption also increases, but:
A. proportionately
B. more than proportionately
C. less than proportionately
D. equally
Question 24
At prices above the equilibrium price
A. quantity supplied exceeds quantity demanded
B. quantity demanded exceeds quantity supplied
C. there is shortage
D. all of the above is possible
Question 25
Average cost is the sum of AVC and
A. mc
B. tc
C. afc
D. atc
Question 26
Author of the book ‘The General Theory of Employment, Interest andMoney’:
A. karl marxq
B. j.b. say
C. j.m. keynes
D. adam smith
Question 27
Classical aggregate supply curve is:
A. perfectly elastic
B. perfectly inelastic
C. more elastic
D. unitary elastic
Question 28
Change in quantity supplied of a product can result from
A. changes in own price
B. changes in cost of production
C. change in technology
D. change in price of related products
Question 29
Consumption expenditure directly varies with:
A. savings
B. investment
C. disposable income
D. rate of interest
Question 30
Consumption of capital good in the process of production is called as:
A. capital consumption
B. depreciation
C. decay of capital
D. none of the above
Question 31
Cost function relates cost to
A. input
B. output
C. raw material
D. machines
Question 32
Cross elasticity of demand in the case of substitutes:
A. zero
B. negative
C. positive
D. infinity
Question 33
Demand varies ____________ with price.
A. directly
B. positively
C. inversely
D. none of the above
Question 34
Economic growth can be achieved through
A. advanced technology
B. expansion of resources
C. both a & b
D. neither a & b
Question 35
Elasticity of supply for a positively sloped straight line supply curve thatintersects the price axis is:
A. equal to zero
B. equal to one
C. greater than one
D. constant
Question 36
Economic Laws are:
A. statement of tendencies
B. exact and predictable
C. definite
D. none
Question 37
Economic problem arises in
A. planned economies
B. free market economies
C. mixed economies
D. all of the above
Question 38
Effective demand is that demand when:
A. aggregate demand is greater than aggregate supply
B. aggregate demand is less than aggregate supply
C. aggregate demand is equal to aggregate supply
D. all of these
Question 39
Equilibrium in the economy is settled by _________, according to theClassicals.
A. centralized planning
B. price mechanism
C. both the planning and price mechanism
D. none of these
Question 40
Exports minus imports is termed as:
A. net income
B. net imports
C. net exports
D. national income
Question 41
Firms owned by one individual is known as
A. proprietorship
B. partnership
C. corporations
D. none of the above
Question 42
Firms owned by stock holders are known as
A. proprietorship
B. partnership
C. corporations
D. none of the above
Question 43
Firms owned by two or more individuals is known as
A. proprietorship
B. partnership
C. corporations
D. none of the above
Question 44
For complementary goods, the cross elasticity of demand:
A. positive
B. negative
C. zero
D. none
Question 45
From the position of stable equilibrium, the market supply of a commoditydecreases, while the market demand remains unchanged, then:
A. equilibrium price falls
B. equilibrium quantity rises
C. both equilibrium price and equilibrium quantity decreases
D. equilibrium price rises, but equilibrium quantity falls
Question 46
GDP deflator is given by:
A. nominal ni/real ni
B. nominal dgp/real gdp
C. nominal gdp/ nominal gnp
D. real gdp/real gnp
Question 47
GNP measured in terms of current market prices is called:
A. nominal gnp
B. real gnp
C. both
D. none
Question 48
Goods without which people can not live are called:
A. comforts
B. luxuries
C. necessaries
D. none
Question 49
An accounting year in India is:
A. calendar year
B. academic year
C. fiscal year
D. none of these
Question 50
If a positively sloped linear supply curve crosses the quantity axis, theelasticity of supply is:
A. inelastic
B. elastic
C. unitary elastic
D. perfectly elastic
Question 51
If a positively sloped linear supply curve passes through the origin, theelasticity of supply is
A. inelastic
B. elastic
C. unitary elastic
D. perfectly elastic
Question 52
If a small change in price leads to infinitely large change in quantitydemanded, then the demand is:
A. perfectly elastic
B. perfectly inelastic
C. elastic
D. inelastic
Question 53
If a worker specializes in the production of a single good, it is called:
A. product based division of labour
B. process based division of labour
C. worker based division of labour
D. none of these
Question 54
If marginal propensity to consume is 0.8, the value of multiplier will be:
A. 1
B. 2.5
C. 5
D. 2
Question 55
If the income elasticity of demand for a commodity is found to be 0.4,then the commodity concerned is:
A. luxury
B. necessity
C. giffen’s goods
D. independent good
Question 56
If the income elasticity of demand is greater than one, then thecommodity is:
A. necessity
B. luxury
C. inferior
D. non-related commodity
Question 57
If the quantity demanded remains unchanged as the price of thecommodity falls, the coefficient of price elasticity of demand is:
A. greater than
B. one equal to one
C. smaller than one
D. zero
Question 58
If the supply curve of the commodity is having a positive slope, a rise inthe price of the commodity, results in:
A. increase in supply
B. increase in quantity supplied
C. decrease in supply
D. decrease in quantity supplied
Question 59
In a horizontal straight line demand curve, the price elasticity ofdemand is:
A. unity
B. infinity
C. zero
D. less than one
Question 60
In classical theory the level of employment is a function of:
A. price level
B. money wage rate
C. quantity of money
D. real wage rate
Question 61
In drawing an individual demand curve for a commodity, all but whichof the following are kept constant:
A. individual’s money income
B. the prices of the related commodity
C. price of the commodity under consideration
D. tastes of the consumer
Question 62
In Economics, 1930s is popularly known as the period of:
A. great battle
B. great depression
C. industrial revolution
D. great devide
Question 63
In long-run
A. all inputs are fixed
B. all inputs are variable
C. some inputs are fixed and some are variable
D. none of the above
Question 64
In short-run
A. all inputs are fixed
B. all inputs are variable
C. some inputs are fixed and some are variable
D. none of the above
Question 65
In the case of diminishing returns to scale, a given proportionateincrease in all factors causes
A. a more than proportionate increase in output
B. an equal proportionate increase in output
C. a less than proportionate increase in output
D. none of the above
Question 66
In the case of luxury goods, the income elasticity of demand will be:
A. less than unity
B. unity
C. more than unity
D. all the above
Question 67
In the Classical system, the role of the government is:
A. the highest
B. not at all needed
C. limited
D. important
Question 68
In which of the following market, advertisement is absent:
A. monopolistic competition
B. perfect competition
C. oligopoly
D. none of the above
Question 69
Income elasticity is positive, but less than unity in the case of:
A. necessity
B. luxury
C. inferior
D. substitutes
Question 70
Income elasticity of demand for inferior good is:
A. negative
B. positive
C. zero
D. unity
Question 71
Increase in output less than proportional to increase in inputs iscalled:
A. increasing returns
B. constant returns
C. diminishing returns
D. marginal returns
Question 72
Increase in real National Income (NI) means increase in:
A. ni at current prices
B. ni at constant prices
C. both
D. none of these
Question 73
Increasing returns to scale occurs due to
A. division of labour
B. specialization
C. economies of scale
D. all of the above
Question 74
Goods produced for use in future productive process are called:
A. intermediate goods
B. final goods
C. consumer goods
D. capital goods
Question 75
J.B. Say was a _______________Economist.
A. swedish
B. german
C. french
D. american
Question 76
Keynes believed in :
A. full employment equilibrium
B. under employment equilibrium
C. both
D. none
Question 77
Keynes strongly argued for:
A. free trade
B. non-intervention of government
C. laissez-faire
D. governmental intervention
Question 78
labourers are employed the firm produces 136 units of outputThenthe marginal product is ___
A. 120
B. 136
C. 6
D. 16
Question 79
Law of variable proportions is concerned with
A. long-run production function
B. laws of returns to scale
C. short-run production function
D. none of the above
Question 80
Laws of return shows _________production function.
A. short-term
B. medium term
C. long term
D. annual
Question 81
Marginal efficiency of investment curve is:
A. slopping downwards
B. slopping upwards
C. parallel to x axis
D. parallel to y axis
Question 82
Micro economics doesn’t deal with:
A. the study of individual economic units
B. determination of factor prices
C. price determination of commodities
D. general equilibrium analysis
Question 83
Multiplier is obtained by:
A. 1 – mpc
B. 1/1- mps
C. 1/1- apc
D. 1/1-mpc
Question 84
Most important determinant of demand is :
A. income
B. wealth
C. price
D. advertisement
Question 85
Name the economist who analyses the subject matter of economics intotwo branches: micro economic analysis and macro economic analysis.
A. adam smith
B. alfred marshall
C. ragner frisc
D. p a samuelson
Question 86
National income in India is estimated by:
A. rbi
B. nsso
C. cso
D. world bank
Question 87
National income is a ________variable.
A. flow
B. stock
C. static
D. dynamic
Question 88
National Income means:
A. gnp at factor cost
B. gnp at market price
C. nnp at factor cost
D. nnp at market price
Question 89
Net addition to total cost is called:
A. marginal cost
B. average cost
C. fixed cost
D. variable cost
Question 90
Net addition to total utility when one more unit is consumed is:
A. au
B. mu
C. mc
D. tu
Question 91
Net factor income from abroad shows the difference between:
A. gdp and ndp
B. nnp and ndp
C. gnp and gdp
D. gnp and nnp
Question 92
Net indirect taxes means:
A. indirect taxes plus subsidies
B. income minus taxes
C. indirect taxes minus subsidies
D. exports minus imports
Question 93
NNP is equal to:
A. gnp plus depreciation
B. gnp minus depreciation
C. gnp minus exports
D. gnp plus exports
Question 94
Odd-man out from the following
A. steel
B. medicine
C. education
D. train
Question 95
Other things remaining the same, the quantity of a product demandedincreases with ____________ in price.
A. increase
B. decrease
C. variation
D. none of the above
Question 96
Partial equilibrium analysis come under:
A. micro economics
B. macro economics
C. welfare economics
D. international economics
Question 97
Per capita income is equal to:
A. population/national income
B. national income/population
C. national income/gdp
D. nnp/gnp
Question 98
Personal income minus personal taxes is:
A. national income
B. private income
C. disposable income
D. per capita income
Question 99
Pick the odd one from the following:
A. law of market
B. j.b. say
C. full employment
D. j.m. keynes
Question 100
Pick the odd one out:
A. real national income
B. ni at constant price
C. ni at current prices
D. ni at base year price
Question 101
Pick the odd one out:
A. j.b. say
B. david ricardo
C. adam smith
D. j.m. keynes
Question 102
Pick the odd one:
A. aggregate demand
B. effective demand
C. j.m. keynes
D. law of market
Question 103
Production and consumption takes place simultaneously in the case of
A. goods
B. services
C. both in the case of goods and services
D. neither in the case of goods and services
Question 104
Rate of interest will increase when the demand for saving is:
A. less than its supply
B. equal to its supply
C. more than its supply
D. less than or equal to its supply
Question 105
Relation between price of a commodity and demand for anothercommodity is measured by:
A. price elasticity
B. income elasticity
C. cross elasticity
D. elasticity of substitution
Question 106
Returns to scale refers to the production function where
A. all factors are fixed
B. some factors are fixed and others are variable
C. all factors are variable
D. none of the above
Question 107
Self interest, competition, profit motive are the features of:
A. socialism
B. capitalism
C. marxism
D. mixed economy
Question 108
Supply curve represents ________ relationship between quantity andprice
A. direct
B. inverse
C. either direct or inverse
D. none of the above
Question 109
Supply curve represents ________ relationship between quantity andprice.
A. direct
B. inverse
C. either direct or inverse
D. none of the above
Question 110
Temporary unemployment is ____________, according to the Classicaleconomists:
A. impossible
B. permanent
C. possible
D. none of these
Question 111
The ‘point of inflection’ come in which stage of the law of variable proportions
A. stage i
B. stage ii
C. stage iii
D. none of the above
Question 112
The branch of Economics that deals with economic aggregate is called:
A. micro economics
B. development economics
C. macro economics
D. welfare economics
Question 113
The cause for diminishing returns to scale is:
A. improper proportion of factors of production
B. difficulty in the combination of certain factors
C. excess combination of certain factors
D. all of the above
Question 114
The central theme of Keynesian Theory is:
A. laissez-faire
B. free trade
C. effective demand
D. self interest
Question 115
The choice of techniques of production is related to the problem of
A. what to produce
B. how to produce
C. for whom to produce
D. none of the above
Question 116
The Classicals adopted _________policy:
A. governmental policy
B. laissez-faire
C. policy of restriction
D. none of these
Question 117
The concept of effective demand is associated with the name of:
A. marshall
B. keynes
C. krugman
D. adam smith
Question 118
The core of classical economists is:
A. effective demand
B. employment
C. say’s law of market
D. socialism
Question 119
The cost of next best alternative is called
A. marginal cost
B. average cost
C. opportunity cost
D. direct cost
Question 120
The difference between GDP and NDP equals:
A. transfer payments
B. net indirect taxes
C. net factor income from abroad
D. depreciation
Question 121
The distribution of national product among the members of the societyis the problem of:
A. what to produce
B. how to produce
C. for whom to produce
D. all of the above
Question 122
The economic problem arises since
A. wants are unlimited
B. resources are limited
C. resources are capable of alternative uses
D. all of the above
Question 123
The equilibrium price is determined by the forces of:
A. supply only
B. demand only
C. both demand and supply
D. none of these
Question 124
The expected return on investment is called:
A. marginal propensity to save
B. marginal propensity to consume
C. marginal revenue
D. marginal efficiency of investment
Question 125
The first estimate of National income in India was done by:
A. k.n. raj
B. v.k.r.v. rao
C. dadabai naoroji
D. p.c. mahalanobis
Question 126
The functional relationship between inputs and outputs is called
A. production function
B. consumption function
C. investment function
D. saving function
Question 127
The Great Depression was during:
A. 1930s
B. 1920s
C. 1940s
D. 1830s
Question 128
The horizontal supply curve parallel to quantity axis represents
A. elastic supply
B. inelastic supply
C. perfectly elastic supply
D. perfectly inelastic supply
Question 129
The major objective of a firm is
A. profit maximization
B. revenue maximization
C. sales maximization
D. none of the above
Question 130
The market equilibrium for a commodity is determined by :
A. market demand
B. market supply
C. balancing of the forces of demand and supply
D. any of the above
Question 131
In India, National income is estimated at:
A. current prices
B. constant prices
C. both current and constant prices
D. none of these
Question 132
In India, the current base year is:
A. 1980-81
B. 1993-94
C. 1999-2000
D. 2004-05
Question 133
The problem of allocation of resources is concerned with:
A. what to produce
B. how to produce
C. for whom to produce
D. all of the above
Question 134
The problem of what to produce is a problem of:
A. distribution
B. technological choice
C. consumption
D. allocation of resources
Question 135
The proportion between incremental income and incrementalconsumption is called:
A. apc
B. aps
C. mpc
D. mps
Question 136
The proportion between total income and total consumption is called:
A. average propensity to consume
B. average propensity to save
C. marginal propensity to consume
D. marginal propensity to save
Question 137
The proportion between total income and total saving is called:
A. apc
B. aps
C. mpc
D. mps
Question 138
The resources are :
A. limited
B. unlimited
C. not only limited but are capable of alternative uses
D. none of the above
Question 139
The solution to diminishing returns to scale is :
A. technical progress
B. expansion of resources
C. proper combination or resources
D. all of the above
Question 140
The term “Classical Economics” was first used by:
A. j.m. keynes
B. adam smith
C. karl marx
D. david ricardo
Question 141
The term production refers to:
A. producing things which are capable of satisfying human wants
B. creation or addition of utilities
C. transformation of inputs into output
D. all of the above
Question 142
The variable cost of a firm vary in direct proportion to the
A. volume of its output
B. extent of its profits
C. volume of its sale
D. all of the above
Question 143
The want satisfying power of a commodity:
A. satisfaction
B. utility
C. value
D. marginal utility
Question 144
There is ______ relationship between price and quantity supplied
A. positive
B. negative
C. constant
D. inverse
Question 145
There is no distinction between firm and industry in
A. perfect competition
B. monopoly
C. monopolistic competition
D. oligopoly
Question 146
Those things that possess both utility and scarcity are called:
A. economic goods
B. free goods
C. intermediate goods
D. luxuries
Question 147
Total product reaches at maximum when
A. mp is increasing
B. mp is maximum
C. mp = 0
D. mp is negative
Question 148
Transformation of inputs into outputs is known as
A. production
B. consumption
C. distribution
D. exchange
Question 149
Under the classical system, the equilibrium will be at:
A. under employment
B. full employment
C. voluntary employment
D. disguised unemployment
Question 150
Value of output minus intermediate consumption is:
A. depreciation
B. value added
C. net value added
D. net exports
Question 151
The law of diminishing marginal utility was popularized by:
A. keynes
B. marshall
C. smith
D. samuelson
Question 152
The law of Diminishing returns is applicable to:
A. agriculture only
B. industry only
C. in short-run only
D. universally
Question 153
When a firm doubles its inputs and finds that its output has morethan doubled, this is known as:
A. economies of scale.
B. constant returns to scale.
C. diseconomies of scale.
D. a violation of the law of diminishing returns.
Question 154
When an individual’s income falls, when everything else remains thesame, his demand for inferior goods:
A. increases
B. decreases
C. remains unchanged
D. cannot say
Question 155
When an individual’s income rises, when everything else remains thesame, his demand for normal goods:
A. rises
B. falls
C. remains the same
D. any of the above is possible
Question 156
When average product is at a maximum, marginal product is:
A. zero
B. increasing
C. equal to average product
D. greater than average product
Question 157
When marginal product reaches its maximum, what can be said oftotal product?
A. total product must be at its maximum
B. total product starts to decline even if marginal product is positive
C. total product is increasing if marginal product is still positive
D. total product levels off
Question 158
When MC cuts AC, AC is at its ____________
A. maximum
B. minimum
C. zero
D. negative
Question 159
When MC is greater than AC, AC
A. rises
B. falls
C. maximum
D. minimum
Question 160
When output is zero, variable cost is ________
A. maximum
B. minimum
C. infinity
D. zero
Question 161
When Q = f (P), the elasticity coefficient is measured by:
A. ∆q/∆p / p/q
B. ∆p/∆q * q/p
C. ∆q/∆p * p/q
D. ∆p/∆q / q/p
Question 162
When savings exceeds the demand for savings, the rate of interest will:
A. rise
B. fall
C. remain constant
D. none of these
Question 163
When the price of the substitute commodity of X falls, the demand for X:
A. rises
B. falls
C. remains unchanged
D. all of the above is possible
Question 164
When there are only few sellers of the commodity, the market is called:
A. monopoly
B. duopoly
C. oligopoly
D. monopsony
Question 165
When total utility is maximum, marginal utility is:
A. maximum
B. one
C. zero
D. infinite
Question 166
When TU falls, MU is:
A. rises
B. zero
C. positive
D. negative
Question 167
Which of the following doest not include in the group?
A. gdp
B. gnp
C. gva
D. ndp
Question 168
Which of the following is an exception to the law of demand?
A. giffen good
B. normal good
C. superior good
D. all of the above
Question 169
Which of the following is not a method of national income estimation?
A. matrix method
B. income method
C. expenditure method
D. product method
Question 170
Which of the following is the reason for law of demand:
A. price effect
B. backlash effect
C. income effect
D. real balance effect
Question 171
Which of the following is true:
A. gdp is a geographical concept
B. gdp is not a geographical concept
C. gdp and gnp are same
D. none of them
Question 172
Which of the following is true?
A. gnp + depreciation = nnp
B. gnp = gdp + net factor income from abroad
C. ndp = gnp minus net indirect taxes
D. nnp = dgp minus depreciation
Question 173
Which of the following items does not include in the group?
A. consumption
B. investment
C. rate of interest
D. net exports
Question 174
Which one of the following come under macro economics:
A. per capita income
B. study of a firm
C. individual income
D. theory of factor pricing
Question 175
Which one of the following is an example of fixed input
A. raw materials
B. casual workers
C. plant and equipments
D. all of the above
Question 176
Which one of the following is not come under macro economics
A. national income
B. per capita income
C. disposable income
D. individual income
Question 177
Which one of the following is not related to economies of scale:
A. scope for division of labour and specialization
B. scope for getting inputs at cheaper rates
C. difficulty faces by the managers to coordinate the business
D. scope for better storage facilities
Question 178
Who is known as the father of Modern Economics?
A. adam smith
B. j.m.keynes
C. robinson
D. ricardo
Question 179
Who is the leader of the Classical school?
A. thomas robert malthus
B. j.s. mill
C. david ricardo
D. adam smith.
Question 180
Who repudiated Say’s law of market?
A. j.b. say
B. david ricardo
C. j.s. mill
D. j.m. keynes
Question 181
Who wrote the article Laws of Returns Under Competitive Conditions?
A. joan robinson
B. e.h. chamberlin
C. a.c. pigou
D. p. sraffa
Question 182
Demand varies _________ with price.
A. Directly
B. Positively
C. Inversely
D. None of the above
Question 183
___________ cost can never become zero.
A. Variable cost
B. Fixed cost
C. Marginal cost
D. Average cost
Question 184
Temporary unemployment is _________, according to the Classicaleconomists:
A. Impossible
B. Permanent
C. Possible
D. None of these
Question 185
___ is not an example of free good
A. sunlight
B. car
C. petrol
D. computer
Question 186
___ is an example of secondary input
A. land
B. labour
C. capital
D. raw material
Question 187
Other things remaining the same, the quantity of a product demandedincreases with _________ in price.
A. increase
B. decrease
C. variation
D. none of the above
Question 188
When output is zero, variable cost is ______
A. maximum
B. minimum
C. infinity
D. zero
Question 189
When MC cuts AC, AC is at its _________
A. maximum
B. minimum
C. zero
D. negative
Question 190
Supply curve represents ______ relationship between quantity andprice
A. direct
B. inverse
C. either direct or inverse
D. none of the above
Question 191
National income is a ______variable.
A. flow
B. stock
C. static
D. dynamic
Question 192
The Classicals adopted ______policy:
A. governmental policy
B. laissez-faire
C. policy of restriction
D. none of these
Question 193
Equilibrium in the economy is settled by ______, according to theClassicals.
A. centralized planning
B. price mechanism
C. both the planning and price mechanism
D. none of these
Question 194
J.B. Say was a ____________Economist.
A. swedish
B. german
C. french
D. american
Question 195
Supply curve represents ______ relationship between quantity andprice.
A. direct
B. inverse
C. either direct or inverse
D. none of the above
Question 196
Laws of return shows ______production function.
A. short-term
B. medium term
C. long term
D. annual