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History of Development & Planning - Indian Economy General Awareness MCQs | Page-8

Questions
71 “Functional Finance” is associated with:
A Adams
B Adam Smith
C Adolph Wogner
D Abba ‘P’ Lerner

Answer: Option [D]

“Functional Finance” is associated with Abba ‘P’ Lerner. Functional finance is an economic theory proposed by Abba P. Lerner, based on effective demand principles and chartalism. It states that government should finance itself to meet explicit goals, such as taming the business cycle, achieving full employment, ensuring growth, and low inflation.

72 As per the TRIPS Agreement 1994, a good originating from a region with specific character/quality/reputation is covered/to be protected under the IPR as
A Patent
B Trademark
C Trade sector
D GI (Geographical Indicator)

Answer: Option [D]

As per the TRIPS Agreement 1994, a good originating from a region with specific character/quality/reputation is covered/to be protected under the IPR as GI (Geographical Indicator). A geographical indication (GI) is a sign used on products that have a specific geographical origin and possess qualities or a reputation that are due to that origin.

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73 The economist who believed that unemployment is impossible and that market mechanism has a built in regulatory system to meet any ups and downs
A Ohlin
B J.B. Say
C Galbraith
D J.M. Keynes

Answer: Option [B]

The economist who believed that unemployment is impossible and that market mechanism has a built in regulatory system to meet any ups and downs J.B. Say. 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 basis of this law that the classical economists thought that general over-production and hence general unemployment were impossible. The law simply states "supply creates its own demand."

74 An economy which does not have any relation with the rest of the world is known as
A Mixed economy
B Open economy
C Closed economy
D Socialist economy

Answer: Option [C]

The correct answer is Closed economy. A closed economy typically refers to a country that does not trade or engage in other financial exchanges with any other country. That means no imports come into the country and no exports leave it.

75 A philosophy that the worker should share in industrial decisions is termed as
A Worker dictatorship
B Industrial socialism
C Worker sovereignty
D Industrial democracy

Answer: Option [D]

A philosophy that the worker should share in industrial decisions is termed as Industrial democracy. Industrial democracy is an arrangement which involves workers making decisions, sharing responsibility and authority in the workplace.

76 According to Modern Theory of Rent, rent accrues to
A Any factor
B Capital only
C Land only
D Labour only

Answer: Option [A]

According to Modern Theory of Rent, rent accrues to Any factor. Ricardo restricted rent to land only, but modern economists have shown that rent arises in return to any factor of production, the supply of which is inelastic.

77 The book which is at the centerpiece of the study of Macro-Economics was written by
A Prof. Benham
B Prof. Baumol
C Prof. Samuelson
D Prof. J.M. Keynes

Answer: Option [D]

The correct answer is Prof. J.M. Keynes. J.M. Keynes’s magnum opus, ‘The General Theory of Employment, Interest and Money’ is often viewed as the foundation of modern macroeconomics. Macroeconomics deals with the performance, structure, behavior, and decision-making of an economy as a whole, rather than individual markets.

78 The basic problem studied in Macro-Economics is
A Usage of income
B Flow of income
C Production of income
D Distribution of income

Answer: Option [C]

The basic problem studied in Macro-Economics is Production of income. Macroeconomics includes the sum total of economic activities. It deals with issues like production, growth, inflation and unemployment of national income. It is all about maximizing national income and growth.

79 ‘Take-off stage’ in an economy means
A Steady growth begins
B Economy is stagnant
C Economy is about to collapse
D All controls are removed

Answer: Option [A]

‘Take-off stage’ in an economy means Steady growth begins. Take-off occurs when sector led growth becomes common and society is driven more by economic processes than traditions. At this point, the norms of economic growth are well established and growth becomes a nation's "second nature" and a shared goal.

80 The relationship between the rate of interest and level of consumption was first visualized by
A Amartya K. Sen
B Irving Fisher
C Milton Friedman
D James Duesenberry

Answer: Option [B]

The relationship between the rate of interest and level of consumption was first visualized by Irving Fisher. Irving Fisher, in his Theory of Interest (1930), found a relationship between interest rates and consumption levels. However his theory is about interest rate and inflation, which discusses the effect of real interest rate on savings.

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