Question 1

Marginalism and the idea that pricing reflects marginal utility and demand was a movement away from:&#10;A)the quantity theory of money.&#10;B)thelabor theory of value.&#10;C)mercantilism.&#10;D)marx's business cycle theory.

Accepted Answer

Marginalism, which posits that prices are determined by the marginal utility of goods, marked a shift away from the labor theory of value. The labor theory of value, associated with classical economists like Adam Smith and Karl Marx, suggests that the value of a good is determined by the labor required to produce it. Marginalism focuses instead on the subjective valuation of goods by consumers.

Question 2

Explicit treatments of marginal analysis were least central to the writings of:&#10;A)william stanley jevons.&#10;B)l&#233;on walras.&#10;C)john stuart. mill.&#10;D)carl menger.

Accepted Answer

John Stuart Mill's work, while foundational in many respects to economics, did not focus on marginal analysis to the extent that the works of William Stanley Jevons, Léon Walras, and Carl Menger did. These three are often credited with independently developing the marginal utility theory, which is central to the concept of marginal analysis, during the late 19th century. Mill's contributions to economics were significant but predated the marginal revolution.

Question 3

The economist who spent twenty years cautiously trying out his ideas on his students before finally presenting them to the world near the close of the 19th century was: ]&#10;A)william stanley jevons.&#10;B)henry george.&#10;C)l&#233;on walras.&#10;D)alfred marshall

Accepted Answer

Alfred Marshall is known for his significant contributions to economics, particularly for his work "Principles of Economics" published in 1890. He was meticulous in developing his theories, often testing them over many years, including on his students, before formally presenting his ideas.

Question 4

Alfred Marshall formalized and then popularized the analytical technique known as:&#10;A)general equilibrium analysis&#10;B)felicific calculus.&#10;C)partial equilibrium analysis.&#10;D)differential equations.

Accepted Answer

Alfred Marshall is best known for formalizing and popularizing the analytical technique of partial equilibrium analysis, which focuses on the equilibrium of a particular sector or market in isolation from other markets.

Question 5

Vilfredo Pareto's very deductive mathematical models and proofs made the market seem quite mechanistic, an approach most notably rejected by his slightly older contemporary:&#10;A)karl marx.&#10;B)l&#233;on walras.&#10;C)alfred marshall.&#10;D)william stanley jevons.

Accepted Answer

Alfred Marshall rejected the mechanistic view of markets, emphasizing the importance of human behavior and psychological factors in economics, contrasting with Pareto's more mathematical and mechanistic approach.

Question 6

The economic theorist who most vociferously opposed using &#34;all else assumed constant&#34; [ceteris paribus] assumptions when building theory was:&#10;A)karl marx.&#10;B)alfred marshall.&#10;C)thomas robert malthus .&#10;D)l&#233;on walras.

Accepted Answer

The answer of The economic theorist who most vociferously opposed...

Question 7

The Lausanne School is to L&#233;on Walras as the Austrian School is to:&#10;A)vilfredo pareto.&#10;B)carl menger.&#10;C)enrico barone.&#10;D)david hume.

Accepted Answer

Carl Menger is considered the founder of the Austrian School of economics, similar to how Léon Walras is associated with the Lausanne School.

Question 8

The idea that governmental redistributions of income or wealth will ultimately have no effect on how disparate income and wealth are distributed is sometimes called:&#10;A)say's law of markets.&#10;B)the law of comparative advantage.&#10;C)keynes' law.&#10;D)pareto's law.

Accepted Answer

Pareto's law, or the Pareto principle, is often interpreted in economics to suggest that a small percentage of the population will inevitably hold a large proportion of the wealth, regardless of governmental redistribution efforts. This principle suggests that efforts to redistribute wealth or income will ultimately not change the fundamental distribution pattern, where a small number of people control a large portion of the resources.

Question 9

Which of the following is not among Rostow's stages of growth&#10;A)the traditional society&#10;B)the age of low mass consumption&#10;C)the take-off&#10;D)the drive to maturity

Accepted Answer

Rostow's stages of growth do not include "the age of low mass consumption." This term is not one of the stages outlined by Rostow. His model includes stages like the traditional society, the preconditions for take-off, the take-off, the drive to maturity, and the age of high mass consumption.

Question 10

Which of the following is the nucleus of the Keynesian theory of employment?&#10;A)the theory of consumption function&#10;B)the principle of effective demand&#10;C)marginal efficiency of capital&#10;D)none of these

Accepted Answer

The principle of effective demand is at the core of Keynesian theory, which posits that the level of employment is determined by the aggregate demand in the economy, not by the price of labor as classical theory suggested.

Question 11

The study of the effect of consumption on investment is called&#10;A)accelerator&#10;B)multiplier&#10;C)leverage effect&#10;D)none of these

Accepted Answer

The answer of The study of the effect of consumption...

Question 12

Who among the following was the leader of Monetarism&#10;A)keynes&#10;B)milton friedman&#10;C)a.w.philip&#10;D)mankiv

Accepted Answer

The answer of Who among the following was the leader...

Question 13

The multiplier is the reciprocal of&#10;A)marginal propensity to save&#10;B)marginal propensity to consume&#10;C)both mpc and mps&#10;D)none of the above

Accepted Answer

The answer of The multiplier is the reciprocal of&#10;A)marginal propensity...

Question 14

The mew classical economics is based on&#10;A)market clearing&#10;B)non-market clearing&#10;C)both a and b&#10;D)none of these

Accepted Answer

The answer of The mew classical economics is based on&#10;A)market...

Question 15

The welfare of all means:&#10;A)swaraj&#10;B)sarvodaya&#10;C)brahmacharya&#10;D)swadeshi

Accepted Answer

The answer of The welfare of all means:&#10;A)swaraj&#10;B)sarvodaya&#10;C)brahmacharya&#10;D)swadeshi...

Question 16

The desire of people to keep money with them is called by Keynes as:&#10;A)investment&#10;B)saving&#10;C)liquidity preference&#10;D)consumption

Accepted Answer

The answer of The desire of people to keep money...

Question 17

According to Keynes marginal efficiency of capital has a tendency to :&#10;A)increase&#10;B)decrease&#10;C)remains constant&#10;D)none of these

Accepted Answer

The answer of According to Keynes marginal efficiency of capital...

Question 18

The change in income as a result of change in is investment called by Keynes as:&#10;A)multiplier&#10;B)accelerator&#10;C)marginal efficiency of capital&#10;D)none of these

Accepted Answer

The answer of The change in income as a result...

Question 19

Marginal efficiency of capital is :&#10;A)the expected rate of profit from new investment&#10;B)the expected rate of profit from past investment&#10;C)the expected rate of profit from saving&#10;D)none of these.

Accepted Answer

The answer of Marginal efficiency of capital is :&#10;A)the expected...

Question 20

Keynes theory of employment relates to:&#10;A)the long run&#10;B)short run&#10;C)very long period&#10;D)none of these

Accepted Answer

The answer of Keynes theory of employment relates to:&#10;A)the long...

Question 21

The two important determinants of investment according to Keynes are:&#10;A)interest rate and marginal efficiency of capital&#10;B)saving and interest rate&#10;C)interest rate and consumption&#10;D)none of these

Accepted Answer

The answer of The two important determinants of investment according...

Question 22

According to Keynes consumption is a function of :&#10;A)income&#10;B)saving&#10;C)employment&#10;D)none of these

Accepted Answer

The answer of According to Keynes consumption is a function...

Question 23

The author of the &#34;End of Laissez faire&#34; was.&#10;A)keynes&#10;B)friedman&#10;C)laffer&#10;D)j.b.say

Accepted Answer

The answer of The author of the &#34;End of Laissez...

Question 24

The author of 'Arthashastra' is&#10;A)kautilya&#10;B)bana bhatta&#10;C)thiruvalluvar&#10;D)kabir das

Accepted Answer

The answer of The author of 'Arthashastra' is&#10;A)kautilya&#10;B)bana bhatta&#10;C)thiruvalluvar&#10;D)kabir das...

Deck 2: Economic Thories and Thinkers