The difference between Marginal Products and Marginal productivities is that the former represent certain quantities of output while the later are _____.

1. 1. Averages
   2. Rations
   3. Co-variances
   4. Correlations

Under Monopolistic competition, there can be freedom of entry only in the sense of a freedom to produce _____.

1. 1. Highest output
   2. Lowest output
   3. Same output
   4. Close substitute

When the current interest rate is low with high savings rate; so that keeping monetary policy ineffective is known as _____.

1. 1. Liquidity Trap
   2. Economic Growth
   3. Economic Development
   4. Ratchet Effect

Friedman Hypothesis state that the Marginal Propensity to Consume (MPC) out of transitory income is zero also has an interesting implication for _____.

1. 1. Monetary Policy
   2. Fiscal Policy
   3. Pricing Policy
   4. Tax Policy

Ration of nominal GNP to real GNP is called _____.

1. 1. Investment Multiplier
   2. Saving Paradox
   3. GNP cost deflator
   4. GNP price deflator

A type of unemployment in which workers of are in-between jobs or are searching for new and better jobs is called _____ unemployment.

1. 1. Frictional
   2. Cyclical
   3. Structural
   4. Turnover

The Real wages are obtained after adjusting for _____.

1. 1. Tax
   2. Inflation
   3. Interest Rate
   4. Demand for labour

Which of the following is regarded as the ‘Father of Economics’?

1. 1. Adam Smith
   2. Marshall
   3. Malthus
   4. Maynard Keynes

John Maynard Keynes was a/an _____.

1. 1. Economist
   2. Poet
   3. Scientist
   4. Mathematician

Income that is saved and not invested is known as _____.

1. 1. Deposit
   2. Hoarding
   3. Capital
   4. None of these