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Classical Theory Quiz

Authored by TIFFANY THOMPSON

Business

6th Grade

Used 5+ times

Classical Theory Quiz
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12 questions

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1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

If there is an advancement of technology within an economy then,

The aggregate demand curve will shift to the right

The short run aggregate supply curve will shift to the right

The long run aggregate supply curve will shift to the right

The long run aggregate supply curve will shift to the left

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the fundamental principle of the classical theory?

Laissez-faire approach

Government intervention is necessary

Prices are sticky

Savings will never be equal to investment

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

The Classical doctrine is based on three firmly held beliefs. Which of the following are not one of these beliefs?

Supply creates its own demand

Prices, wages and interest rates are sticky

Prices, wages and interest rates are flexible

Savings is equal to investment

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

In which year did the classical theory emerge?

1930

1750

1980

1630

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

If the wage rate is higher than the equilibrium wage rate, what is the market condition that exist?

Shortage of labour

Demand pull inflation

Surplus of labour

Cost push inflation

6.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

According to the classicalist, what chain reaction will occur if their is a shortage of labour?

wages will increase-more workers will offer their services- more people will be employed- equilibrium will be attained

wages will decrease- less persons will offer their services- less people will be employed- equilibrium will be achieved.

wages will increase-less workers will offer their services- more people will be employed- equilibrium will be attained

wages will decrease- more persons will offer their services- more people will be employed- equilibrium will be achieved.

7.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Why is the short run aggregate supply curve upward sloping?

The law of equi-marginal utility

Says Law

The law of diminishing utility

The law of diminishing returns

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