According to Schumpeter ?

Related Mcqs:

1. Which of the following is not an assumption of Schumpeter’s stationary state ?

   A. Perfect competition
   B. An economy below full employment
   C. No savings or technical change
   D. No entrepreneurial function is required

2. Joseph Schumpeter is the exceptional economist who links the entrepreneur to ?

   A. oligopolistic capitalism
   B. resource management
   C. innovation
   D. land and labor

3. According to Emerson: “Want is a growing giant whom the coat of Have was never large enough to cover.” According to economists, “Want” exceeds “Have” because:

   A. people are greedy
   B. productive resources are limited
   C. human beings are inherently insecure
   D. people are irrational

   Submitted by: Mansoor Ul Haque

4. From each according to his ability to each according to his need is the theoretical slogan of ?

   A. Feudal System
   B. Capitalist System
   C. Fascist System
   D. Communist System

5. Assume that Country A is relatively abundant in labor and Country B is relatively abundant in land Note that wages are the returns to labor and rents are the returns to land According to the factor price equalization theorem, once Country A begins specializing according to comparative advantage and trading with Country B: A. wages and rents should fall in Country A B. wages and rents should rise in Country A C. wages should rise and rents should fall in Country A D. wages should fall and rents should raise in Country A ?

   XA. wages and rents should fall in Country A
   B. wages and rents should rise in Country A
   C. wages should rise and rents should fall in Country A
   D. wages should fall and rents should raise in Country A

6. According to supply-side economists, as tax rates are reduced, labor supply should increase. This implies that ?

   A. there is no income effect when tax rates are changed
   B. the income effect of a wage change is greater than the substitution effect of a wage change.
   C. there is no substitution effect when tax rates are changed
   D. the substitution effect of a wage change is greater than the income effect of a wage change

7. According to supply side economists as tax rates are reduced labour supply should increase. This implies that ?

   A. There is no income effect when tax rates are changed
   B. The income effect of a wage change is greater than the substitution effect of a wage change.
   C. There is no substitution effect when tax rates are changed
   D. The substitution effect of a wage change is greater than the income effect of a wage change

8. According to supply-side economists if taxes are cut so that people have an increased incentive to work and businesses have an increased incentive to invest ?

   A. aggregate supply will increase , aggregate demand will decrease
   B. aggregate supply will increase, aggregate output will increase and the price level will decrease
   C. aggregate supply will increase aggregate output will increase and the price level will increase
   D. both aggregate supply and demand will increase and the price level will increase

9. According to the signaling view of the education ?

   A. can make any worker into a superstar
   B. increases human capital and the wages of workers
   C. only helps firms sort workers into high ability and low-ability workers
   D. reduces the wage gap between high-skill and low-skill workers.

10. According to the Classical theory of international trade ?

    A. Only countries with low wages will export
    B. Only countries with high wages will import
    C. Countries with high wages will have higher prices
    D. All of the above are false