Objective Type Questions on Economics
31-Who among the following put forward the innovation theory of profit?
(A) Joseph Schumpeter
(B) JS Mill
(C) AC Pigou
(D) MS Douglas
32-“Parallel economy” is equivalent to
(A) bank money
(B) black money
(C) paper money
(D) white money
33-The upper portion of the kinked demand curve is relatively
(A) inelastic
(B) less elastic
(C) more elastic
(D) more inelastic
34-“Money is what money does.” Who said this?
(A) Paul Euizig
(B) Walker
(C) Robertson
(D) Crowther
35-The tertiary sector of an economy refers to
(A) information technology
(B) manufacturing sector
(C) primary sector
(D) service sector
36-Legal tender money is also known as
(A) bank money
(B) credit money
(C) paper money
(D) flat money
37-“Phillips curve” shows the relationship between
(A) rate of wage increase and rate of public investment
(B) rate of wage decrease and rate of unemployment
(C) rate of wage increase and rate of unemployment
(D) rate of inflation and rate of employment
38-Planning by direction is an integral part of
(A) free market economy
(B) mixed economy
(C) socialist economy
(D) capitalist economy
39-The concept of quasi-rent refers to
(A) the return to agriculture during the short-run
(B) half of the total rent on land
(C) the return to a factor, supply of which is fixed in the short run
(D) the rent of land
40-“Bad money drives good money out of circulation” is known as
(A) pure theory of money
(B) law of money circulation
(C) Gresham’s law
(D) Gossen’s law
ANSWERS:
31-(A), 32-(B), 33-(C), 34-(B), 35-(D), 36-(C), 37-(D), 38-(C), 39-(C), 40-(C)