A group of modern economists who believe that markets clear very rapidly and that expanding the money supply will always increase prices rather than employment are the ?

A. Keynesians
B. Post-keynesians
C. Monetarists
D. New classical school

A set of alternative commodity bundles that a person can command in a society using the totality of rights and opportunities that he possesses is known as ?

A. Production possibilities
B. Entitlement
C. Income distribution
D. Egalitarianism

In food demand growth equation D = Φ + a E, a is the income elasticity of demand for food E is the per capita income growth and Φ is ?

A. Poverty rates
B. Food security index
C. Change in the quantity of food demanded per capita
D. Population growth

Prices that do not always adjust rapidly to maintain equality between quantity supplied and quantity demanded are ?

A. Market prices
B. Sticky prices
C. Fixed prices
D. Regulatory prices

According to the classical economists the economy ?

A. Requires fine tuning to reach full employment
B. Can never deviate from full employment
C. Will never be at full employment
D. Is self-correcting.

Keynesian economics became popular because it was able to explain ?

A. Stagflation in the late 1970s
B. Demand-pull inflation in the 1960s
C. Low growth rates in the 1950s
D. The prolonged existence of high unemployment during the great depression

The government increase government spending to try to reduce unemployment This is an example of ?

A. Laissez-faire.
B. Monetary policy
C. Fine tuning
D. Automatic stablisers

Rapid increase in the price level during periods of recession of high unemployment are known as ?

A. Slump
B. Inflation
C. Stagflation
D. Stagnation

Amartya K. Sen emphasizes that having enough to eat depends on ?

A. Society’s system of entitlement
B. An egalitarian income distribution
C. Low poverty rates
D. Society’s high gini concentration

Which of the following is a form of urban bais ?

I- Government may set price floors on food and price ceilings for industrial goods
Ii- tax incentive and subsidies to infant industry
Iii- tariff and quota protection for industry
Iv- spending more for education training housing, health and transport in urban areas than in rural areas.