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CIA II Examination - Economics

Total questions: 20

Worksheet time: 10mins

Name
Class
Date
1.

The central idea of Marx's philosophy is:

a)

Idealism

b)

Dialectical Materialism

c)

Positivism

d)

Pragmatism

2.

According to Marx, history progresses through:

a)

Evolutionary cooperation

b)

Class struggle between opposing forces

c)

Natural selection

d)

Peaceful coexistence of classes

3.

According to Marx, the value of a commodity is determined by:

a)

Market demand

b)

Scarcity of the product

c)

Average labour time required to produce it

d)

Utility to the consumer

4.

The difference between the value created by labour and the wages paid is called:

a)

Capital accumulation

b)

Surplus value

c)

Profit maximization

d)

Rent

5.

According to Marx, exploitation of workers arises because:

a)

They work fewer hours

b)

They are paid less than the value they create

c)

They are owners of means of production

d)

They consume more than they produce

6.

Concentration of capital means:

a)

Expansion of small businesses

b)

Accumulation of capital into fewer hands

c)

Equal distribution of wealth

d)

Decline of industrial production

7.

Which consequence of concentration of capital did Marx predict?

a)

Rise of self-employment

b)

Elimination of class struggle

c)

Widening gap between bourgeoisie and proletariat

d)

State control of religion

8.

Identify the thinker regarded as the intellectual father of modern scientific socialism.

a)

Karl Marx

b)

Schumpeter

c)

Rostow

d)

Rodan

9.

Identify the author of the book Das Kapital.

a)

Friedman

b)

Higgins

c)

J.R. Hicks

d)

Marx

10.

Identify the year in which the book The General Theory of Employment, Interest and Money was published.

a)

1936

b)

1932

c)

1817

d)

1871

11.

Identify the pioneer of the modern study of macroeconomics.

a)

Adam Smith

b)

J M Keynes

c)

Menger

d)

Karl Marx

12.

Keynes opposed the classical belief in:

a)

Automatic full employment through free markets

b)

Role of government intervention

c)

Importance of aggregate demand

d)

Use of fiscal policy

13.

According to Keynes, consumption is mainly determined by:

a)

Population growth

b)

Current disposable income

c)

Interest rate fluctuations

d)

Government policies only

14.

A key policy recommendation of Keynesian economics is:

a)

Laissez-faire without state intervention

b)

Active government intervention through fiscal and monetary policy

c)

Abolition of trade unions

d)

Restriction of international trade

15.

The 'multiplier' concept introduced by Keynes shows:

a)

The ratio of exports to imports

b)

The process by which investment leads to multiple increases in income

c)

The impact of wages on inflation

d)

The decline in value of money

16.

The fraction of additional income that is spent on consumption is called:

a)

Average Propensity to Save

b)

Marginal Propensity to Consume

c)

Marginal Efficiency of Capital

d)

Consumption Multiplier

17.

State the main factor determining employment in Keynesian theory.

a)

Elasticity of demand

b)

Effective Demand

c)

Effective cost

d)

Effective surplus

18.

Identify the term commonly used as a synonym for government investments.

a)

Induced

b)

Autonomous

c)

Speculative

d)

Contractual

19.

Identify the variable that governs the Precautionary demand for money.

a)

Income

b)

Profit

c)

Rate of interest

d)

Volume of business

20.

The multiplayer concept was introduced by Keynes show

a)

The ratio of exports to imports

b)

The process by which investment leads to multiple increase in income

c)

The impact of veg of inflationary

d)

The decline in value of money