Theories of Employment and Income Book Back Practice Test

12th Standard Economics — Theories of Employment and Income: Book Back Online Practice Test

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If every able bodied person who is willing to work at the prevailing wage rate is employed called ________.

A.Full employment B.Under employment C.Unemployment D.Employment opportunity

Structural unemployment is a feature in a ________.

A.Static society B.Socialist society C.Dynamic society D.Mixed economy

In disguised unemployment, the marginal productivity of labour is ________.

A.Zero B.One C.Two D.Positive

The main concern of the Classical Economic Theory is ________.

A.Under employment B.Economy is always in the state of equilibrium C.Demand creates its supply D.Imperfect competition

J.B. Say is a ________.

A.Neo Classical Economist B.Classical Economist C.Modern Economist D.New Economist

According to Keynes, which type of unemployment prevails in a capitalist economy?

A.Full employment B.Voluntary unemployment C.Involuntary unemployment D.Under employment

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

Keynes attributes unemployment to ________.

A.A lack of effective supply B.A lack of effective demand C.A lack of both D.None of the above

________ flexibility brings equality between saving and investment.

A.Demand B.Supply C.Capital D.Rate of interest

Q10

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

A.Keynes' B.Say's C.Classical D.Employment

Q11

The basic concept used in Keynes Theory of Employment and Income is ________.

A.Aggregate demand B.Aggregate supply C.Effective demand D.Marginal Propensity Consume

Q12

The component of aggregate demand is ________.

A.Personal demand B.Government expenditure C.Only export D.Only import

Q13

Aggregate supply is equal to ________.

A.C + I + G B.C + S + G + (x-m) C.C + S + T + (x-m) D.C + S + T + Rf

Q14

Keynes theory pursues to replace laissez faire by ________.

A.No government intervention B.Maximum intervention C.State intervention in certain situation D.Private sector intervention

Q15

In Keynes theory of employment and income, ________ is the basic cause of economic depression.

A.Less production B.More demand C.Inelastic supply D.Less aggregate demand in relation to productive capacity

Q16

Classical theory advocates ……

A.Balanced budget B.Unbalanced budget C.Surplus budget D.Deficit budget

Q17

Keynes theory emphasized on …… equilibrium.

A.Very short run B.Short run C.Very long run D.Long run

Q18

According to classical theory, rate of interest is a reward for ……

A.Investment B.Demand C.Capital D.Saving

Q19

In Keynes theory, the demand for and supply of money are determined by ……

A.Rate of interest B.Effective demand C.Aggregate demand D.Aggregate supply

Q20

Say's law stressed the operation of …………. in the economy.

A.Induced price mechanism B.Automatic price mechanism C.Induced demand D.Induced investment

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About this Theories of Employment and Income test

This free online practice test covers Theories of Employment and Income from the 12th Standard Economics (Samacheer Kalvi) syllabus. Choose the number of questions and an optional time limit, then answer and submit — everything is checked in your browser, with the correct answers and a worked explanation shown at the end. For the full solutions to every question in this set, see the solved MCQs page.

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