Theories of Employment and Income Model Question Paper

12th Standard EM

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Economics

Time : 02:00:00 Hrs
Total Marks : 50
    6 x 1 = 6
  1. Every able bodied person who is willing to work at the prevailing wage rate is employed called as ___________

    (a)

    Full employment

    (b)

    Under employment

    (c)

    Unemployment

    (d)

    Employment opportunity

  2. J.B. Say is a ___________

    (a)

    Neo Classical Economist

    (b)

    Classical Economist

    (c)

    Modern Economist

    (d)

    New Economist

  3. 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

  4. _________ Flexibility brings equality between saving and investment

    (a)

    Demand

    (b)

    Supply

    (c)

    Capital

    (d)

    Interest

  5. According to classical theory, rate of interest is a reward for __________

    (a)

    Investment

    (b)

    Demand

    (c)

    Capital

    (d)

    Saving

  6. Say’s law stressed the operation of________ in the economy

    (a)

    Induced price mechanism

    (b)

    Automatic price mechanism

    (c)

    Induced demand

    (d)

    Induced investment

  7. 5 x 1 = 5
  8. Full employment

  9. (1)

    C + I + G + (X-M)

  10. Cyclical Unemployment

  11. (2)

    Rate of interest

  12. ED

  13. (3)

    Lerner

  14. Keynes' book

  15. (4)

    Caused by deficiency of effective demand

  16. MEC

  17. (5)

    The general theory of employment interest and money'

    2 x 2 = 4
  18. Assertion (A) : Disguised unemployment occurs when more people are working than what is actually required.
    Reason (R) :In Disguised unemployment Marginal Productivity of labour is zero or less or negative.
    (a) Both A and R are true and R is the Correct explanation of A
    (b) Both A and R are true but R is not the correct explanation of A
    (c) A is the true but R is false
    (d) A is false but R is true

  19. Assertion (A) : "The General Theory of employment, interest and money" published in 1936.
    Reason (R) : A highly significant work that marked a turning point in the development of modern economic theory.
    (a) Both A and R are true and R is the Correct explanation of A
    (b) Both A and R are true but R is not the correct explanation of A
    (c) A is the true but R is false
    (d) A is false but R is true

  20. 2 x 2 = 4
  21. "Supply creates its own demand" - who enunciated this proposition.
    (a) J.S. Mill
    (b) J.M. Keynes
    (c) David Ricardo
    (d) J.B. Sa

  22. Classicism:
    (a) Capitalism is well and good.
    (b) Macro approach to national problems.
    (c) Champions of Laissez - faire policy.
    (d) Long run equilibrium

  23. 3 x 2 = 6
  24. What is the main feature of rural unemployment ?

  25. Give reasons for labour retrenchment at present situation

  26. What is effective demand ?

  27. 5 x 3 = 15
  28. According to classical theory of employment, how wage reduction solve the problem of unemployment diagramatically explain.

  29. Explain Keynes’ theory in the form of flow chart

  30. Explain about aggregate supply with the help of diagram.

  31. Write any five differences between classism and Keynesianism.

  32. Explain the classical theory about unemployment?

  33. 2 x 5 = 10
  34. Critically explain Say’s law of market

  35. Explain the differences between classical theory and Keynes theory.

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