1201. The money illusion occurs when excess demand for goods,service, assets and input is determined by :

A. Money variable
B. Beal variable
C. Nominal Variable *
D. Normal variable

1202. Fisher’s version for the quantity theory of money falls empirically because its assumption are :

A. Realistic
B. Unrealistic *
C. Organized
D. Unorganized

1203. It is often recognized that income measured by statistician may be :

A. Effective index of wealth
B. Defective index of wealth *
C. External index of wealth
D. None of these

1202. The quantity of money in an economy and supply of money are :

A. Synonyms *
B. Antonyms
C. Anonyms
D. None of these

1203. The price taker firm is one which :

A. Can influence market price
B. Cannot influence market price *
C. Can for price
D. None of these

1204. The following is the distinction between economic profit and accounting profit:

A. Implicit costs *
B. Fixed costs
C. Explicit costs
D. Variable costs

1205. Micro economics is also known as :

A. Price thoery *
B. Demand theory
C. Income theory
D Expenditure theory

1206.The basic IS-LM model was constructed by :

A. Keynes *
B. Ricardo
C. Smith
D. Hooks

1207. An economic model describing the working of an economy consist of :

A. Functional relationship
B. Family relationship
C. Economic position *
D. Stagnant relationship

1208.Price mechanism has also given the name :

A. Flicandian-lane
B. Laisseze-falre
C. Price system *
D. None of these

1209. ” What money is written by, not what it does, is:

A. Prof Slgwick
B. Gresham *
C. Friedman
D Keynes

1210. Big push industrialization is relatively successful in :

A. South Korea *
B. Russia
C. China
D. North Korea