Description : The demand for money, according to Keynes, is for - (1) speculative motive (2) transaction motive (3) precautionary motive (4) All the above motives
Last Answer : (3) precautionary motive Explanation: According to Keynes, money is demanded because of three motives -transaction, precautionary and speculative. The first two motives provide yield of convenience ... third motive provides money yield. Keynes has termed demand for money as liquidity preference.
Description : If someone keeps some money for bad days, this demand for money is known by ……. motive of money (a) Speculative ; (b) Transaction ; (c) Precautionary ; (d) Store
Last Answer : (c) Precautionary ;
Description : Speculative demand for cash is determined by - (1) The rate of interest (2) the level of income (3) the general price level (4) the market conditions
Last Answer : (1) The rate of interest Explanation: Speculative demand is the demand for financial assets, such as securities, money or foreign currency that is not dictated by real transactions such as trade, or financing. ... rate, more people will expect a rise in interest rate (or a fall in bond prices).
Description : Speculative demand for cash is determined by (1) The rate of interest (2) the level of income (3) the general price level (4) the market conditions
Last Answer : The rate of interest
Description : Which one of the following economists is associated with Portfolio approach of demand for money ? (a) Keynes (b) Tobin (c) Friedman (d) Baumol
Last Answer : (b) Tobin
Description : 7. According to Keynes, when the Great Depression started, the government should have: a. done nothing b. decreased the money supply c. had a large increase in government spending d. enacted high tariffs, such as the Smoot-Hawley Tariff
Last Answer : c. budget surplus of $1000
Description : Transaction in which a contract for the purchase or sale of any commodity including stocks and shares is periodically of ultimately settled otherwise than by the actual delivery or transfer of the ... known as: a) Wagering Transaction b) Speculative Transaction c) Deemed Speculative Transaction
Last Answer : b) Speculative Transaction
Description : "Supply creates its own demand" - Who said this? (1) J. B. Say (2) J. S. Mill (3) J. M. Keynes (4) Senior
Last Answer : (1) J. B. Say Explanation: "Supply creates its own demand" is the formulation of Say's law by John Maynard Keynes. The rejection of this doctrine is a central component of The General Theory of ... you build it, they will come", and Inherent in supply is the wherewithal for its own consumption".
Description : In explaining the level of unemployment, Keynes emphasized,- (a) Changes in technology. (b) Aggregate demand. © Inflationary expectations. (d) Lending by financial institutions.
Last Answer : (b) Aggregate demand.
Description : “Supply creates its own demand” – Who said this ? (1) J. B. Say (2) J. S. Mill (3) J. M. Keynes (4) Senior
Last Answer : J. B. Say
Description : According to Keynes, business cycles are due to variation in the rate of investment caused by fluctuations, in the - (1) Marginal efficiency of capital (2) Marginal propensity to save (3) Marginal propensity to consumption (4) Marginal efficiency to investment
Last Answer : (1) Marginal efficiency of capital Explanation: According to Keynes' General Theory of Employment, Interest, and Money,' business cycles are caused by variations in the rate of investment ... efficiency of capital. Marginal efficiency of capital means the expected profits from new investments.
Description : "Interest is a reward for parting with liquidity" is according to - (1) Keynes (2) Marshall (3) Haberler (4) Ohlin
Last Answer : (1) Keynes Explanation: In macroeconomic theory, liquidity preference refers to the demand for money, considered as liquidity. The concept was first developed by John Maynard Keynes in his book The ... a reward for saving, interest in the Keynesian analysis is a reward for parting with liquidity.
Description : According to Keynes, business cycles are due to variation in the rate of investment caused by fluctuations , in the (1) Marginal efficiency of capital (2) Marginal propensity to save (3) Marginal propensity to consumption (4) Marginal efficiency to investment
Last Answer : Marginal efficiency of capital
Description : A is accused of waging war against the Government of India by taking part in and armed in surrection. In which property is destroyed, Troops are attached and goals are broken open. A is not ... for relevant facts c) They are effect of relevant facts d) They form part of general transaction
Last Answer : d) They form part of general transaction
Description : Which of the following concepts are most closely associated with J.M. Keynes? (1) Control of money supply (2) Marginal utility theory (3) Indifference curve analysis (4) Marginal efficiency of captial
Last Answer : (4) Marginal efficiency of captial Explanation: The marginal efficiency of capital (MEC) is that rate of discount which would equate the price of a fixed capital asset with its present discounted ... given by the returns expected from the capital asset during its life Just equal its supply price
Description : Which of the following concepts are most closely associated with J.M. Keynes ? (1) Control of money supply (2) Marginal utility theory (3) Indifference curve analysis (4) Marginal efficiency of captial
Last Answer : Marginal efficiency of captial
Description : Which of the following is not a feat tare of a capitalist economy? (1) Right to private property (2) Existence of competition (3) Service motive (4) Freedom of choice to consumers
Last Answer : (3) Service motive Explanation: Capitalism is an economic system in which each individual in his capacity as a consumer, producer, and resource owner is engaged in economic activity with a large ... of businessmen, farmers, producers, including that of wage-earners are based on the profit motive.
Description : Which of the following is not a feature of a capitalist economy? (1) Right to private property (2) Existence of competition (3) Service motive (4) Freedom of choice to consumers
Last Answer : Service motive
Description : A culture can be divided into subcultures according to A)personality characteristics. B)the motives that people have for their behaviour. C)geographic regions or human characteristics, such as age ... regions and income levels. E)the information to which consumers allow themselves to be exposed.
Last Answer : C)geographic regions or human characteristics, such as age or ethnic background
Description : The economist who believed that unemployment is impossible and that market mechanism has a built in regulatory system to meet any ups and downs - (1) J.M.Keynes (2) Ohlin (3) J. B. Say (4) Galbraith
Last Answer : (3) J. B. Say Explanation: The classical economists' belief in full employment as a normal condition of a free market economy is based on Say's Law of Markets. It was on the ... overproduction and hence general unemployment were impossible. The law simply states "supply creates its own demand."
Description : Who among the following is not a classical economist? (1) David Ricardo (2) John Stuart Mill (3) Thomas Malthus (4) John Maynard Keynes
Last Answer : (4) John Maynard Keynes Explanation: Classical economics is widely regarded as the first modern school of economic thought. Its major developers include Adam Smith, Jean-Baptiste Say, David ... affected the theory and practice of modern macroeconomics and formed the economic policies of governments.
Description : Who defined investment as "the construction of a new capital asset like machinery or factory building"? (1) Hansen (2) J.M. Keynes (3) Harrod (4) J.R. Hicks
Last Answer : (2) J.M. Keynes Explanation: Investment expenditure refers to the creation of new assets i.e. an addition to the stock of existing capital assets. According to Keynes investment demand depends upon ... the rate of interest (IR). Investment demand decreases with the increase in the rate of interest.
Description : The time element in price analysis was introduced by : (1) J.M. Keynes (2) Alfred Marshall (3) J.S. Mill (4) J.R. Hicks
Last Answer : (2) Alfred Marshall Explanation: Marshall, who propounded the theory that price is determined by both demand and supply, also gave a great importance to the time element in the determination of price. ... and the longer the period more important will be the influence of cost of production on value."
Description : ho defined 'Rent' as that portion or produce of the earth which is paid to the landlord for the use of original and indestructible power of the soil? (1) Ricardo (2) Marshall (3) Keynes (4) Plgou
Last Answer : (1) Ricardo Explanation: In his The Principles of Political Economy and Taxation (1821), David Ricardo stated: "Rent is that portion of the produce of the earth, which is paid to the landlord for ... in popular language, the term is applied to whatever is annually paid by a farmer to his landlord.
Description : The book which is at the centrepiece of the study of Macro - Economics was written by - (1) Prof. Samuelson (2) Prof. J.M. Keynes (3) Prof. Benham (4) Prof. Baumol
Last Answer : (2) Prof. J.M. Keynes Explanation: J.M. Keynes's magnum opus, The General Theory of Employment, Interest and Money' is often viewed as the foundation of modern macroeconomics. Macroeconomics ... , structure, behavior, and decision-making of an economy as a whole, rather than individual markets.
Description : Wage fund theory was propounded by (1) J.B. Say (2) J.S. Mill (3) J.R. Hicks (4) J.M. Keynes
Last Answer : (2) J.S. Mill Explanation: J.S. Mill developed the wagesfund theory. This theory of wage was an attempt to show that in certain circumstances wages could rise above subsistence level. According to this ... be paid. This fund of capital is called wages-fund out of which wages are paid to labourers.
Description : The 'Canons of Taxation' were propounded by - (1) Edwin Canon (2) Adam Smith (3) J.M. Keynes (4) Dalton
Last Answer : (2) Adam Smith Explanation: Canons of Taxation were first originally laid down by economist Adam Smith in his famous book 'The Wealth of Nations". In this book, Adam smith only gave four canons of taxation: ... equity: (ii) canon of certainty: (iii) canon of convenience; and (iv) canon of economy.
Description : The term 'Macro Economics' was used by _______. (1) J.M. Keynes (2) Ragner Frisch (3) Ragner Nurkse (4) Prof. Knight
Last Answer : (2) Ragner Frisch Explanation: Ragnar Frisch coined the widelyused term pair macroeconomics/ microeconomics in 1933. He was a Norwegian economist and the co-recipient of the first Nobel Memorial Prize in Economic Sciences in 1969. Fie is known for having founded the discipline of econometrics.
Description : Who is called the Father of Economics? (1) J.M. Keynes (2) Malthus (3) Ricardo (4) Adam Smith
Last Answer : (4) Adam Smith Explanation: Adam Smith is best known for two classic works: The Theory of Moral Sentiments (1759), and An Ingully into the Nature and Causes of the Wealth of Nations (1776 ... father of modern economics and is still among the most influential thinkers in the field of economics today.
Description : The father of Economics is - (1) Marshall (2) Adam Smith (3) J.M. Keynes (4) Karl Marx
Last Answer : (2) Adam Smith Explanation: Adam Smith is known as 'Father of Modern Economics,' He is best known for two classic works: The Theory of Moral Sentiments (1759), and An Inquiry into the Nature and Causes of the Wealth of Nations (1776).
Description : Who said, "Economics is the Science of Wealth"? (1) Robbins (2) J.S. Mill (3) Adam Smith (4) Keynes
Last Answer : (3) Adam Smith Explanation: It was Adam Smith who conceptualized Economics as a science of wealth. Elaborating upon the scope and fundamental conceptualizations of the new science, he then called political economy as "an inquiry into the nature and causes of the wealth of nations."
Description : The Liquidity Preference Theory of Interest was propounded by : (1) J.M. Keynes (2) David Ricardo (3) Alfred Marshall (4) Adam Smith
Last Answer : (1) J.M. Keynes Explanation: In macroeconomic theory, liquidity preference refers to the demand for money, considered as liquidity. The concept was first developed by John May-nard Keynes in his book ... Money (1936) to explain determination of the interest rate by the supply and demand for money.
Description : The terms "Micro Economics" and "Macro Economics" were coined by - (1) Alfred Marshall (2) Ragner Nurkse (3) Ragner Frisch (4) J.M. Keynes
Last Answer : (3) Ragner Frisch Explanation: The terms microeconomics and macroeconomics were coined by Professor Ragnar Frisch of Oslo University for the first time in 1933 and since then they gained popularity and ... number of significant advances in the field of economics and coined a number of new words.
Description : The concept of HDI was popularized by a. Morris D Morris b. Adam Smith c. Keynes d. Mahbub Ul Haq
Last Answer : d. Mahbub Ul Haq The concept developed in the 1990s. It has 3 important parameters- life expectancy, education achievement index and standard of living index.
Description : The idea that government's fiscal policy can be used to stabilize the level of output and employment can be attributed to which of the following economists: a) Frederich Hayek b) Ludwig von Mises c) Frederic Bastiat d) John Maynard Keynes
Last Answer : d) John Maynard Keynes John Maynard Keynes's 1936 book, 'The General Theory of Employment, Interest, and Money' laid the foundations for Macroeconomics
Description : Which economist is famous for his theory of comparative advantage? a) Karl Marx b) John Maynard Keynes c) F. Hayek d) David Ricardo
Last Answer : d) David Ricardo David Ricardo was a British political economist and his most famous theory was that of comparative advantage. Comparative advantage refers to the doctrine that anynation should use its resources solely in industries where it has the most international competitiveness
Description : Das Kapital, published in German in 1867, was authored by: a) Karl Marx b) John Maynard Keynes c) F. Hayek d) Samuelson
Last Answer : a) Karl Marx b) John Maynard Keynes c) F. Hayek d) Samuelson
Description : Who is called as the 'founding father of modern economics'? a) Adam Smith b) John Maynard Keynes c) F. Hayek d) Samuelson
Last Answer : a) Adam Smith Adam Smith's “1776 book "An Inquiry into the Nature and Causes of the Wealth of Nations"― many of the major ideas that we use in economics today
Description : Who is credited with brining the term "the invisible hand"• in economics? a) Adam Smith b) John Maynard Keynes c) F. Hayek d) Samuelson
Last Answer : a) Adam Smith
Description : Imperfect competition was introduced by A.Marshall B.Chamberlin C.Keynes D.None
Last Answer : B.Chamberlin
Description : Law of diminishlng marginal rate of substitution is associated with A.Marshall B.Hicks C.Slutsky D.Keynes
Last Answer : B.Hicks
Description : Who is credited for the concept that there could be equilibrium in an economy at less than full employment also ? (a) J.B. Say (b) Keynes (c) Fisher (d) Milton Friedman
Last Answer : (a) J.B. Say
Last Answer : Alfred Marshall
Last Answer : J.M. Keynes
Description : Who defined ‘Rent’ as that portion or produce of the earth which is paid to the landlord for the use of original and indestructible power of the soil ? (1) Ricardo (2) Marshall (3) Keynes (4) Pigou
Last Answer : Ricardo
Description : The ‘Canons of Taxation’ were propounded by (1) Edwin Canon (2) Adam Smith (3) J.M. Keynes (4) Dalton
Last Answer : Adam Smith
Description : The term ‘Macro Economics’ was used by __________ . (1) J.M. Keynes (2) Ragner Frisch (3) Ragner Nurkse (4) Prof. Knight
Last Answer : Ragner Frisch
Description : The book which is at the centrepiece of the study of Macro - Economics was written by (1) Prof. Samuelson (2) Prof. J.M. Keynes (3) Prof. Benham (4) Prof. Baumol
Last Answer : Prof. J.M. Keynes
Description : The economist who believed that unemployment is impossible and that market mechanism has a built in regulatory system to meet any ups and downs (1) J.M.Keynes (2) Ohlin (3) J.B.Say (4) Galbraith
Last Answer : J.B.Say