20 multiple-choice questions (MCQs)
related to Jean-Baptiste Say, Say's Law of Markets, Say's Identity, and
Quantity:
1.
Jean-Baptiste Say is best known for his formulation of:
a) Say's Law of Markets
b) Say's Theory of Money
c) Say's Principle of Utility
d) Say's Quantity Theory of Money
Answer: a) Say's Law of Markets
2. According
to Say's Law of Markets, which of the following statements is true?
a) Supply creates its own demand
b) Demand creates its own supply
c) Prices determine both supply and demand
d) Government intervention is necessary for
market equilibrium
Answer: a) Supply creates its own demand
3. Say's Law
of Markets suggests that:
a) Excessive saving can lead to economic
downturns
b) Aggregate demand can exceed aggregate
supply
c) Gluts or excess supply are temporary
phenomena
d) Government spending is the primary driver
of economic growth
Answer: c) Gluts or excess supply are
temporary phenomena
4. Say's Law
of Markets implies that:
a) Unemployment is caused by insufficient
demand
b) Savings reduce the level of investment
c) Economic recessions are self-correcting
d) Consumer spending is independent of
income levels
Answer: c) Economic recessions are
self-correcting
5. Say's
Identity states that:
a) Income equals expenditure
b) Savings equals investment
c) Government spending equals taxation
d) Imports equal exports
Answer: a) Income equals expenditure
6. Say's
Identity is often expressed as:
a) S = I
b) S = Y - C - G
c) Y = C + I + G + NX
d) Y = C + S + T
Answer: d) Y = C + S + T
7. According
to Say's Identity, if an economy is in equilibrium:
a) Savings must equal investment
b) Consumption must equal income
c) Taxes must equal government spending
d) Imports must equal exports
Answer: a) Savings must equal investment
8. Say's
Quantity Theory states that:
a) Prices are determined by the quantity of
money in circulation
b) Quantity of money is determined by the
price level
c) Money supply equals money demand
d) Inflation is caused by excessive saving
Answer: a) Prices are determined by the
quantity of money in circulation
9. Say's
Quantity Theory of Money emphasizes the:
a) Long-run relationship between money
supply and prices
b) Short-run fluctuations in money demand
c) Role of interest rates in monetary policy
d) Importance of government control over the
money supply
Answer: a) Long-run relationship between
money supply and prices
10.
According to Say's Quantity Theory of Money, an increase in the money supply,
with all else equal, will lead to:
a) Deflation
b) Stagnant economic growth
c) Inflation
d) Increased investment
Answer: c) Inflation
11. Say's
Law of Markets suggests that economic downturns:
a) Are primarily caused by excessive
government spending
b) Can be mitigated through monetary policy
c) Are temporary and self-correcting
d) Require government intervention for
recovery
Answer: c) Are temporary and
self-correcting
12. Say's
Identity highlights the relationship between:
a) Aggregate demand and aggregate supply
b) Savings, investment, and taxation
c) Price level and money supply
d) Exports and imports
Answer: b) Savings, investment, and
taxation
13. Say's
Quantity Theory of Money is closely related to the:
a) Quantity theory of inflation
b) Classical theory of interest rates
c) Keynesian theory of income determination
d) Monetarist theory of monetary policy
Answer: a) Quantity theory of inflation
14. Say's
Identity implies that any excess of spending over income must be financed by:
a) Borrowing from foreign countries
b) Borrowing from the domestic private
sector
c) Government borrowing
d) Selling assets
Answer: c) Government borrowing
15. Say's
Law of Markets is often summarised as:
a) "Supply creates its own
demand"
b) "Demand creates its own
supply"
c) "Savings equal investment"
d) "Prices are determined by the
quantity of money"
Answer: a) "Supply creates its own
demand"
16. Say's
Quantity Theory of Money suggests that changes in the money supply:
a) Have no impact on prices in the long run
b) Are primarily influenced by changes in
the price level
c) Directly influence economic output
d) Lead to fluctuations in interest rates
Answer: a) Have no impact on prices in the
long run
17. Say's
Identity emphasises the importance of:
a) Fiscal policy in stabilising the economy
b) Balancing government budgets
c) Regulating the banking system
d) Managing exchange rates
Answer: b) Balancing government budgets
18. Say's
Quantity Theory of Money is consistent with the:
a) Keynesian view of monetary policy
b) Quantity theory of inflation
c) Austrian school of economics
d) Classical theory of income determination
Answer: b) Quantity theory of inflation
19. Say's
Law of Markets implies that:
a) Government intervention is necessary to
achieve equilibrium
b) Business cycles are inevitable
c) Economic growth is determined by
technological progress
d) Saving is detrimental to economic growth
Answer: c) Economic growth is determined by
technological progress
20. Say's
Quantity Theory of Money suggests that inflation is primarily caused by:
a) Excessive government spending
b) Changes in aggregate demand
c) Increases in the money supply
d) Declines in aggregate supply
Answer: c) Increases in the money supply
20 multiple-choice questions (MCQs)
related to the Theory of Money, including Keynesian economics and Say's Law,
along with their answers:
1. Which
economist is associated with the Theory of Money?
a) Adam Smith
b) John Maynard Keynes
c) Milton Friedman
d) Karl Marx
Answer: b) John Maynard Keynes
2. Say's Law
states that:
a) Supply creates its own demand
b) Demand creates its own supply
c) Demand and supply are unrelated
d) Supply and demand always balance each
other
Answer: a) Supply creates its own demand
3. According
to Keynesian economics, during economic downturns, what tends to happen to
aggregate demand?
a) Increases
b) Decreases
c) Remains constant
d) Fluctuates randomly
Answer: b) Decreases
4. Keynesian
theory suggests that during recessions, governments should:
a) Decrease spending
b) Increase taxes
c) Increase spending
d) Implement austerity measures
Answer: c) Increase spending
5. Which of
the following is a characteristic of Keynesian economics?
a) Emphasis on free markets
b) Belief in self-regulating markets
c) Advocacy for government intervention
d) Faith in trickle-down economics
Answer: c) Advocacy for government
intervention
6. According
to Say's Law, which of the following is true?
a) Savings are detrimental to economic
growth
b) Consumption is the sole driver of
economic growth
c) Supply creates its own demand
d) Government intervention is necessary for
economic stability
Answer: c) Supply creates its own demand
7. Keynesian
economists argue that in times of recession, what should governments do to
stimulate economic activity?
a) Reduce government spending
b) Lower interest rates
c) Increase taxes
d) Decrease money supply
Answer: b) Lower interest rates
8. Say's Law
is often summarised as:
a) "Spend more, save less."
b) "Supply creates its own
demand."
c) "Demand drives supply."
d) "Government intervention is
key."
Answer: b) "Supply creates its own
demand."
9. Keynesian
economics gained prominence during which historical period?
a) The Great Depression
b) The Industrial Revolution
c) The Renaissance
d) The Roaring Twenties
Answer: a) The Great Depression
10.
According to Keynes, what is the primary factor influencing economic activity?
a) Government policies
b) Consumer preferences
c) Business investment
d) Aggregate demand
Answer: d) Aggregate demand
11. In
Keynesian economics, what is the role of government in stabilising the economy?
a) Minimal intervention
b) Direct control of production
c) Active fiscal and monetary policies
d) Laissez-faire approach
Answer: c) Active fiscal and monetary
policies
12. Say's
Law implies that:
a) Demand always exceeds supply
b) Markets are always in equilibrium
c) Supply shortages lead to inflation
d) Economic downturns are self-correcting
Answer: b) Markets are always in
equilibrium
13.
Keynesian economics suggests that during times of high unemployment, what
should the government focus on?
a) Decreasing inflation
b) Reducing government debt
c) Increasing aggregate demand
d) Privatising industries
Answer: c) Increasing aggregate demand
14.
According to Say's Law, what drives economic growth?
a) Government spending
b) Consumer savings
c) Business investment
d) Aggregate demand
Answer: c) Business investment
15.
Keynesian economics argues that during economic downturns, what typically
happens to private investment?
a) Increases
b) Remains constant
c) Decreases
d) Becomes unpredictable
Answer: c) Decreases
16. Say's
Law implies that:
a) Supply shortages lead to economic growth
b) Demand shortages lead to economic
recessions
c) Savings are harmful to the economy
d) Government intervention is always
necessary
Answer: a) Supply shortages lead to
economic growth
17. In
Keynesian economics, what is the relationship between savings and investment?
a) Savings always lead to increased
investment
b) Investment drives savings
c) Savings and investment are independent
d) Savings negatively affect investment
Answer: c) Savings and investment are
independent
18.
According to Keynes, what can cause aggregate demand to fall short of aggregate
supply?
a) High levels of consumer debt
b) Excessive government intervention
c) Lack of confidence in the economy
d) Insufficient savings
Answer: c) Lack of confidence in the
economy
19. Say's
Law suggests that:
a) Government intervention is necessary for
economic stability
b) The economy is inherently unstable
c) Markets tend towards equilibrium
d) Demand always exceeds supply
Answer: c) Markets tend towards equilibrium
20.
Keynesian economics recommends that during economic downturns, governments
should focus on:
a) Decreasing public spending
b) Increasing taxes
c) Stimulating demand through fiscal policy
d) Adopting a laissez-faire approach
Answer: c) Stimulating demand through
fiscal policy
20 multiple-choice questions (MCQs)
related to Nassau William Senior, a prominent classical economist:
1. Nassau
William Senior is best known for his contributions to which field?
a) Physics
b) Sociology
c) Political economy
d) Psychology
Answer: c) Political economy
2. Nassau
Senior is associated with which school of economic thought?
a) Keynesian economics
b) Classical economics
c) Neoclassical economics
d) Marxist economics
Answer: b) Classical economics
3. Senior's
work focused on:
a) Macroeconomics
b) Microeconomics
c) Economic history
d) Economic sociology
Answer: b) Microeconomics
4. Nassau
Senior was a contemporary of which other notable economist?
a) Adam Smith
b) John Stuart Mill
c) Karl Marx
d) John Maynard Keynes
Answer: b) John Stuart Mill
5. Senior's
contributions to economics primarily revolved around:
a) Labour theory of value
b) Theory of capital accumulation
c) Theory of wages
d) Theory of rent
Answer: c) Theory of wages
6. Senior's
views on wages were influenced by:
a) Marxist ideology
b) Classical economic theory
c) Keynesian economics
d) Neoclassical economics
Answer: b) Classical economic theory
7. Nassau
Senior argued that wages are primarily determined by:
a) Demand and supply in the labour market
b) Government regulations
c) Cost of living
d) Bargaining power of workers
Answer: a) Demand and supply in the labour
market
8. In
Senior's analysis, what role does population growth play in determining wages?
a) It lowers wages due to increased labour
supply
b) It raises wages due to increased demand
for labour
c) It has no significant impact on wages
d) It leads to wage fluctuations
Answer: a) It lowers wages due to increased
labour supply
9. Nassau
Senior's work on wages is often associated with which concept?
a) Marginal productivity theory
b) Labour theory of value
c) Surplus value
d) Wage rigidity
Answer: a) Marginal productivity theory
10. Senior's
theory of wages suggests that:
a) Wages tend to equal the value of labour
b) Wages tend to exceed the value of labour
c) Wages tend to fall below the value of
labour
d) Wages are unrelated to the value of
labour
Answer: a) Wages tend to equal the value of
labour
11. Nassau
Senior's views on wages differed from those of:
a) Adam Smith
b) David Ricardo
c) Karl Marx
d) John Maynard Keynes
Answer: b) David Ricardo
12. Nassau
Senior served as a professor at which university?
a) University of Oxford
b) University of Cambridge
c) University of London
d) University of Edinburgh
Answer: c) University of London
13. Senior's
work on wages had a significant impact on the development of:
a) Marxist economics
b) Neoclassical economics
c) Keynesian economics
d) Austrian economics
Answer: b) Neoclassical economics
14. Nassau
Senior's analysis of wages was influenced by:
a) Empirical data
b) Philosophical principles
c) Historical narratives
d) Mathematical models
Answer: a) Empirical data
15. Nassau
Senior's contributions to economics extended beyond wages to include:
a) Monetary theory
b) International trade
c) Economic policy
d) Economic methodology
Answer: c) Economic policy
16. Senior's
work on wages emphasised the role of:
a) Labour unions
b) Government intervention
c) Market forces
d) Social contracts
Answer: c) Market forces
17. Nassau
Senior's approach to economics was characterised by:
a) Empiricism and scepticism
b) Deductive reasoning and abstraction
c) Historical analysis and narrative
d) Mathematical formalism
Answer: a) Empiricism and scepticism
18. Nassau
Senior's writings on wages were influenced by his observations of:
a) Industrialization
b) Agricultural productivity
c) International trade patterns
d) Urbanisation trends
Answer: a) Industrialization
19. Senior's
theory of wages is consistent with the broader classical economic view that:
a) Markets tend towards equilibrium
b) Government intervention is necessary for
stability
c) Labour is the ultimate source of value
d) Capital accumulation is the key driver
of growth
Answer: c) Labour is the ultimate source of
value
20. Nassau
Senior's work on wages contributed to the foundation of:
a) Labour economics
b) Development economics
c) Behavioural economics
d) Environmental economics
Answer: a) Labour economics
20 multiple-choice questions (MCQs)
related to John Stuart Mill and his synthesis of classical ideas:
1. John
Stuart Mill is associated with which school of economic thought?
a) Classical economics
b) Neoclassical economics
c) Keynesian economics
d) Marxist economics
Answer: a) Classical economics
2. Mill's
seminal work, "Principles of Political Economy," was published in
which year?
a) 1776
b) 1848
c) 1867
d) 1936
Answer: c) 1867
3. Mill's
synthesis of classical ideas aimed to reconcile:
a) Marxism and capitalism
b) Classical and neoclassical economics
c) Keynesian and monetarist economics
d) Socialism and communism
Answer: b) Classical and neoclassical
economics
4. Which
classical economist heavily influenced Mill's economic thought?
a) Adam Smith
b) David Ricardo
c) Karl Marx
d) Thomas Malthus
Answer: b) David Ricardo
5. Mill
expanded on the classical theory of value by introducing the concept of:
a) Marginal utility
b) Surplus value
c) Diminishing returns
d) Labor as the source of value
Answer: a) Marginal utility
6. Mill's
synthesis of classical ideas emphasised the importance of:
a) Government intervention in the economy
b) Free markets and individual liberty
c) Centralised planning and control
d) Redistribution of wealth
Answer: b) Free markets and individual
liberty
7. In Mill's
view, what role should the government play in the economy?
a) Minimal intervention
b) Active regulation and control
c) Complète laissez-faire
d) Centralised planning
Answer: a) Minimal intervention
8. Mill's
concept of "harm principle" advocated for:
a) Limited government interference in
personal liberties
b) Government control over individual
choices
c) Socialist redistribution of wealth
d) Authoritarian rule
Answer: a) Limited government interference
in personal liberties
9. Mill's
synthesis of classical ideas laid the groundwork for the development of:
a) Keynesian economics
b) Neoclassical economics
c) Marxist economics
d) Austrian economics
Answer: b) Neoclassical economics
10. Which of
the following is NOT a concept associated with Mill's synthesis of classical
ideas?
a) Utility theory
b) Comparative advantage
c) Labour theory of value
d) Marginal analysis
Answer: c) Labour theory of value
11. Mill's
synthesis of classical ideas contributed to the understanding of:
a) Market failures
b) Rational choice theory
c) Economic equilibrium
d) Income distribution
Answer: d) Income distribution
12. Mill's
advocacy for individual freedom extended to areas such as:
a) Freedom of speech and expression
b) Economic planning and control
c) Social welfare programs
d) State ownership of industries
Answer: a) Freedom of speech and expression
13. Mill's
concept of utility focused on:
a) Satisfaction derived from consumption
b) Accumulation of wealth
c) Labour productivity
d) Economic efficiency
Answer: a) Satisfaction derived from
consumption
14. In
Mill's synthesis, what is the significance of comparative advantage?
a) It justifies protectionist trade
policies
b) It supports the theory of international
trade
c) It promotes self-sufficiency
d) It advocates for trade restrictions
Answer: b) It supports the theory of
international trade
15. Mill's
synthesis of classical ideas was influenced by:
a) Marxist ideology
b) Utilitarian philosophy
c) Austrian economics
d) Monetarist theory
Answer: b) Utilitarian philosophy
16. Mill's
views on the role of government were shaped by his belief in:
a) Economic central planning
b) Social Darwinism
c) Social justice and individual liberty
d) Authoritarian rule
Answer: c) Social justice and individual
liberty
17. Mill's
synthesis of classical ideas provided insights into the relationship between:
a) Supply and demand
b) Economic growth and income distribution
c) Savings and investment
d) Government spending and taxation
Answer: b) Economic growth and income
distribution
18. Mill's
concept of liberty encompasses both:
a) Negative and positive freedom
b) Economic and political freedom
c) Socialism and capitalism
d) Authoritarianism and democracy
Answer: a) Negative and positive freedom
19. Mill's
synthesis of classical ideas laid the foundation for the development of:
a) Marxist economics
b) Neoclassical economics
c) Post-Keynesian economics
d) Behavioural economics
Answer: b) Neoclassical economics
20. Mill's
"Principles of Political Economy" remains influential in the study of
economics because of its:
a) Emphasis on government intervention
b) Incorporation of classical and
neoclassical ideas
c) Rejection of free market principles
d) Support for socialist policies
Answer: b) Incorporation of classical and
neoclassical ideas
20 multiple-choice questions (MCQs)
related to the downfall of the Classical economic system:
1. The
downfall of the Classical economic system was primarily marked by:
a) The Great Depression
b) The Industrial Revolution
c) The Renaissance
d) The rise of mercantilism
Answer: a) The Great Depression
2. The
Classical economic system faced challenges due to its inability to explain:
a) Inflation
b) Unemployment
c) Economic growth
d) International trade
Answer: b) Unemployment
3. The
Classical economists believed that:
a) Markets were self-regulating
b) Government intervention was essential
c) Aggregate demand determined output and
employment
d) International trade was harmful
Answer: a) Markets were self-regulating
4. The
downfall of the Classical system was accelerated by:
a) High levels of government spending
b) Increasing labour productivity
c) Technological advancements
d) Financial instability
Answer: d) Financial instability
5. The
Classical economists underestimated the impact of:
a) Aggregate supply shocks
b) Monetary policy
c) Government deficits
d) Technological innovation
Answer: a) Aggregate supply shocks
6. The Great
Depression challenged Classical economic theories by demonstrating:
a) The effectiveness of monetary policy
b) The inadequacy of laissez-faire policies
c) The resilience of free markets
d) The importance of fiscal austerity
Answer: b) The inadequacy of laissez-faire
policies
7. The
downfall of the Classical system led to the rise of:
a) Neoclassical economics
b) Marxist economics
c) Keynesian economics
d) Austrian economics
Answer: c) Keynesian economics
8. Keynesian
economics challenged Classical beliefs by arguing that:
a) Government intervention was unnecessary
b) Markets always clear
c) Aggregate demand could fall short of
supply
d) Inflation was the primary concern
Answer: c) Aggregate demand could fall short
of supply
9. The
Classical system struggled to address:
a) Long-run economic growth
b) Income distribution issues
c) Business cycles
d) Externalities
Answer: c) Business cycles
10. The
downfall of the Classical system was characterised by:
a) Increasing international trade
b) Rising income inequality
c) Stable prices and full employment
d) Persistent economic downturns
Answer: d) Persistent economic downturns
11.
Classical economists believed that:
a) Unemployment was voluntary
b) Government intervention could solve all
economic problems
c) Technological progress would eliminate
poverty
d) Recessions were self-correcting
Answer: d) Recessions were self-correcting
12. The
downfall of the Classical system highlighted the importance of:
a) Reducing government regulation
b) Fiscal policy
c) Monetary expansion
d) Market competition
Answer: b) Fiscal policy
13.
Classical economists relied heavily on the concept of:
a) Aggregate demand
b) Say's Law
c) Marginal utility
d) Rational expectations
Answer: b) Say's Law
14. The
Classical economic system failed to explain:
a) Long-term economic growth
b) Short-term fluctuations in output and
employment
c) International trade patterns
d) Income distribution
Answer: b) Short-term fluctuations in
output and employment
15. The
downfall of the Classical system led to a reevaluation of the role of:
a) Financial markets
b) Labour unions
c) Government in the economy
d) International organisations
Answer: c) Government in the economy
16. The
Classical system's emphasis on:
a) Individual self-interest
b) Collective welfare
c) Government planning
d) Technological progress
Answer: a) Individual self-interest
17. The
downfall of the Classical system highlighted the importance of:
a) Supply-side economics
b) Demand-side economics
c) Laissez-faire policies
d) Redistribution of wealth
Answer: b) Demand-side economics
18. The
Classical system's reliance on:
a) Labour theory of value
b) Utility theory
c) Marginal analysis
d) Say's Law
Answer: d) Say's Law
19. The
downfall of the Classical system led to increased focus on:
a) Achieving price stability
b) Reducing income inequality
c) Managing aggregate demand
d) Encouraging international trade
Answer: c) Managing aggregate demand
20. The
Classical system's inability to address:
a) Short-term economic fluctuations
b) Long-term economic growth
c) Technological progress
d) International trade barriers
Answer: a) Short-term economic fluctuations
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