Keynesian economics is an economic theory of British economist John Maynard. What this theory states ?

Related Mcqs:

1. How is termed the economic theories or Maynard Keynes especially those which advocate government monetary and fiscal and stimulate business activity ?

   A. Market Economy
   B. Harvard Group
   C. Keynesian
   D. London Group

2. Keynesian economics became popular because it was able to explain ?

   A. stagflation in the late 1970s
   B. demand-pull inflation in the 1960s
   C. low growth rates in the 1950s
   D. The prolonged existence of high unemployment during the Great depression

3. The Setrite Corporation produce chairs. An economist working for the firm predicts that if people’s incomes rise next year, then the demand for our chairs will for our chairs will increase ceteris paribus The accuracy of the economist’s prediction depends on whether the chairs Setrite Produce ?

   A. have few substitutes.
   B. are normal goods
   C. have few complementary goods.
   D. have many complementary goods.

4. Suppose two economists are arguing about policies that deal with unemployment. One economist says. The government could lower unemployment by one percentage point if it would just increase government spending by 50 billion dollars the other economist responds Nonsense and poppycock! If the government spent an additional 50 billion dollars it would reduce unemployment by only one tenth of one percent. and that effect would only be temporary! These economists ?

   A. None of these answers
   B. Disagree because they have different scientific judgments
   C. really don’t disagree at all. It just appears that they disagree
   D. disagree because they have different values

5. Suppose two economists are arguing about policies that deal with unemployment One economist says the government should fight unemployment because it is the greatest social evil The other economist response Nonsense Inflation is the greatest social evil These economists ?

   A. really don’t disagree at all It just appears that they disagree.
   B. disagree because they have different values.
   C. none of these answers.
   D. disagree because they have different scientific judgments.

6. Which economics doctrine opposes government regulation or interference in commerce beyond the minimum necessary for a free enterprise system to operate according to its own economics laws and non-interference in affairs of others ?

   A. Free market economy
   B. Laissez faire also Laisser faire
   C. Open market economy
   D. Liberal market economy

7. In development economics, who said,”Economic growth means more output”.

   A. Maddison
   B. Kindleberger
   C. Todaro
   D. Friedman

   Submitted by: Abdul Saboor Nasar

8. If the Keynesian consumption function is C = 10 + 0.8 Td when disposable income is Rs1000 total consumption is what ?

   A. 0.8
   B. 800
   C. 810
   D. 0.81

9. If the Keynesian consumption function is C = 10 + 0.8 Td when disposable income is Rs1000 the marginal propensity to consume is what ?

   A. 0.8
   B. 800
   C. 810
   D. 0.81

10. The Keynesian model is a good guide to ____ behavior and the classical model describes behavior in ______?

    A. long run, short run
    B. flexible imperfect markets
    C. short-term long run
    D. long run, imperfect markets