Theories of Employment and Income One Mark Questions

12th Standard EM

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Economics

Time : 00:30:00 Hrs
Total Marks : 20
    15 x 1 = 15
  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. According to Keynes, which type of unemployment prevails in capitalist economy ?

    (a)

    Full employment

    (b)

    Voluntary unemployment

    (c)

    Involuntary unemployment

    (d)

    Under employment

  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. Keynes attributes unemployment to__________

    (a)

    A lack of effective supply

    (b)

    A lock of effective demand

    (c)

    A lack of both

    (d)

    None of the above

  5. ________ theory is a turning point in the development of modern economic theory.

    (a)

    Keynes’

    (b)

    Say’s

    (c)

    Classical

    (d)

    Employmen

  6. Every able bodied person who is willing to work at the prevailing wage rate but not employed is called _____________

    (a)

    Full employment

    (b)

    Under employment

    (c)

    Unemployment

    (d)

    Employment opportunity

  7. Interest flexibility brings equality between __________

    (a)

    Income and consumption

    (b)

    Saving and investment

    (c)

    Demand and supply

    (d)

    Labour and capital

  8. 'Full employmentas the absence of involuntary unemployment' was said by _________________

    (a)

    J.B. Say

    (b)

    Ricardo

    (c)

    J.M. Keynes.

    (d)

    Adamsmith

  9. Full employment as "that level of employment at which any further increase in spending would resort in an inflationary spiral of wages and prices" who quote this above concept.

    (a)

    J,M. Keynes

    (b)

    Lerner

    (c)

    J,B. Say

    (d)

    All the above

  10. Rate of interest is a stock

    (a)

    Socialism

    (b)

    Keynesianism

    (c)

    Classicism

    (d)

    All the above

  11. 'Rate of interest is a reward for parting with liquidity' - Its belongs to which theory.

    (a)

    Keynesianism

    (b)

    Socialism

    (c)

    Botha' and 'b'

    (d)

    Classicism

  12. Every economy in the world aims at attaining the level of _________

    (a)

    Full employment

    (b)

    Unemployment

    (c)

    Seasonal unemployment

    (d)

    Educated unemployment

  13. A person receives his income from ______________

    (a)

    production

    (b)

    purchase

    (c)

    sales

    (d)

    None of the above

  14. Total production equals to __________

    (a)

    total income

    (b)

    gross income

    (c)

    net income

    (d)

    total sales

  15. Keynes theory of employment and income is the principle of _____________

    (a)

    long run

    (b)

    short run

    (c)

    capital

    (d)

    production

  16. 5 x 1 = 5
  17. Full employment

  18. (1)

    The general theory of employment interest and money'

  19. Cyclical Unemployment

  20. (2)

    Y = C + I= Output = Employment

  21. AD

  22. (3)

    Caused by deficiency of effective demand

  23. Keynes' book

  24. (4)

    Lerner

  25. Aggregate supply function

  26. (5)

    ASF

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