Which economic theory suggests that individuals, acting in their own self-interest, create a system that benefits society as a whole?
a) Keynesian economics
b) Monetarism
c) Neoclassical economics
d) Classical economics
Answer: d) Classical economics
Which economic theory emphasizes the role of government intervention to stabilize the economy and promote economic growth?
a) Keynesian economics
b) Monetarism
c) Neoclassical economics
d) Classical economics
Answer: a) Keynesian economics
Which economic theory argues that changes in the money supply have a direct impact on economic activity and inflation?
a) Keynesian economics
b) Monetarism
c) Neoclassical economics
d) Classical economics
Answer: b) Monetarism
Which economic theory emphasizes the importance of supply and demand in determining prices and resource allocation?
a) Keynesian economics
b) Monetarism
c) Neoclassical economics
d) Classical economics
Answer: c) Neoclassical economics
Which economic theory suggests that government intervention in the economy should be minimal, and markets should be allowed to operate freely?
a) Keynesian economics
b) Monetarism
c) Neoclassical economics
d) Classical economics
Answer: c) Neoclassical economics
Which economic theory argues that individuals make rational decisions based on the available information and maximize their utility?
a) Keynesian economics
b) Monetarism
c) Neoclassical economics
d) Behavioral economics
Answer: c) Neoclassical economics
Which economic theory suggests that economic growth is driven by technological advancements and innovation?
a) Keynesian economics
b) Monetarism
c) Neoclassical economics
d) New growth theory
Answer: d) New growth theory
Which economic theory argues that individuals are not always rational decision-makers and are influenced by cognitive biases?
a) Keynesian economics
b) Monetarism
c) Neoclassical economics
d) Behavioral economics
Answer: d) Behavioral economics
Which economic theory suggests that trade between countries can be mutually beneficial, even if one country has an absolute advantage in all goods?
a) Keynesian economics
b) Monetarism
c) Neoclassical economics
d) Comparative advantage theory
Answer: d) Comparative advantage theory
Which economic theory argues that government spending can stimulate economic growth during times of recession?
a) Keynesian economics
b) Monetarism
c) Neoclassical economics
d) Classical economics
Answer: a) Keynesian economics
Which economic theory suggests that the economy goes through recurring cycles of expansion and contraction?
a) Keynesian economics
b) Monetarism
c) Neoclassical economics
d) Business cycle theory
Answer: d) Business cycle theory
Which economic theory argues that individuals and firms act in their own self-interest and can achieve the best outcomes when markets are competitive and free from government interference?
a) Keynesian economics
b) Monetarism
c) Neoclassical economics
d) Invisible hand theory
Answer: d) Invisible hand theory
Which economic theory suggests that excessive government spending can lead to inflation and economic instability?
a) Keynesian economics
b) Monetarism
c) Neoclassical economics
d) Classical economics
Answer: b) Monetarism
Which economic theory argues that individuals have limited resources and must make choices to allocate those resources efficiently?
a) Keynesian economics
b) Monetarism
c) Neoclassical economics
d) Scarcity theory
Answer: d) Scarcity theory
Which economic theory suggests that economic growth is driven by the accumulation of physical capital and technological progress?
a) Keynesian economics
b) Monetarism
c) Neoclassical economics
d) Solow-Swan growth model
Answer: d) Solow-Swan growth model
Which economic theory argues that income inequality is an inherent feature of capitalist economies and can lead to social and political instability?
a) Keynesian economics
b) Monetarism
c) Neoclassical economics
d) Marxian economics
Answer: d) Marxian economics
Which economic theory suggests that government regulation and intervention are necessary to correct market failures and ensure social welfare?
a) Keynesian economics
b) Monetarism
c) Neoclassical economics
d) Welfare economics
Answer: d) Welfare economics
Which economic theory argues that individuals have different preferences and levels of satisfaction, and their utility cannot be compared objectively?
a) Keynesian economics
b) Monetarism
c) Neoclassical economics
d) Subjective theory of value
Answer: d) Subjective theory of value
Which economic theory suggests that government intervention in the form of taxes and subsidies can correct market failures and improve resource allocation?
a) Keynesian economics
b) Monetarism
c) Neoclassical economics
d) Pigouvian economics
Answer: d) Pigouvian economics
Which economic theory argues that individuals have rational expectations and form their economic decisions based on all available information?
a) Keynesian economics
b) Monetarism
c) Neoclassical economics
d) Rational expectations theory
Answer: d) Rational expectations theory
Which economic theory suggests that markets tend to reach equilibrium through the interaction of supply and demand?
a) Keynesian economics
b) Monetarism
c) Neoclassical economics
d) Equilibrium theory
Answer: d) Equilibrium theory
Which economic theory argues that the long-run average cost of production decreases as the quantity of output increases?
a) Keynesian economics
b) Monetarism
c) Neoclassical economics
d) Economies of scale theory
Answer: d) Economies of scale theory
Which economic theory suggests that individuals save and invest to provide for their future needs and retirement?
a) Keynesian economics
b) Monetarism
c) Neoclassical economics
d) Life-cycle theory of saving
Answer: d) Life-cycle theory of saving
Which economic theory argues that government deficits and debts can crowd out private investment and lead to higher interest rates?
a) Keynesian economics
b) Monetarism
c) Neoclassical economics
d) Crowding-out effect theory
Answer: d) Crowding-out effect theory
Which economic theory suggests that individuals and firms make decisions based on the perceived costs and benefits of different choices?
a) Keynesian economics
b) Monetarism
c) Neoclassical economics
d) Rational choice theory
Answer: d) Rational choice theory
Which economic theory argues that a government’s budget deficits can stimulate economic growth by increasing aggregate demand?
a) Keynesian economics
b) Monetarism
c) Neoclassical economics
d) Fiscal stimulus theory
Answer: a) Keynesian economics
Which economic theory suggests that the level of unemployment in an economy is determined by the aggregate demand for goods and services?
a) Keynesian economics
b) Monetarism
c) Neoclassical economics
d) Phillips curve theory
Answer: a) Keynesian economics
Which economic theory argues that the natural rate of unemployment is determined by structural factors in the labor market?
a) Keynesian economics
b) Monetarism
c) Neoclassical economics
d) Natural rate theory
Answer: d) Natural rate theory
Which economic theory suggests that individuals save and invest based on their expectations of future income and interest rates?
a) Keynesian economics
b) Monetarism
c) Neoclassical economics
d) Intertemporal choice theory
Answer: d) Intertemporal choice theory
Which economic theory argues that individuals and firms face trade-offs when allocating their limited resources?
a) Keynesian economics
b) Monetarism
c) Neoclassical economics
d) Opportunity cost theory
Answer: d) Opportunity cost theory
Which economic theory suggests that changes in the money supply have a direct impact on economic activity and inflation?
a) Keynesian economics
b) Monetarism
c) Neoclassical economics
d) Quantity theory of money
Answer: d) Quantity theory of money
Which economic theory argues that technological advancements and improvements in productivity drive long-term economic growth?
a) Keynesian economics
b) Monetarism
c) Neoclassical economics
d) Endogenous growth theory
Answer: d) Endogenous growth theory
Which economic theory suggests that individuals and firms act based on the expectation that others will act in a certain way?
a) Keynesian economics
b) Monetarism
c) Neoclassical economics
d) Game theory
Answer: d) Game theory
Which economic theory argues that government regulation can lead to inefficiencies in the allocation of resources?
a) Keynesian economics
b) Monetarism
c) Neoclassical economics
d) Regulatory capture theory
Answer: d) Regulatory capture theory
Which economic theory suggests that individuals and firms maximize their utility by consuming goods and services?
a) Keynesian economics
b) Monetarism
c) Neoclassical economics
d) Consumer choice theory
Answer: d) Consumer choice theory
Which economic theory argues that individuals are motivated by fairness and reciprocity in their economic decisions?
a) Keynesian economics
b) Monetarism
c) Neoclassical economics
d) Behavioral economics
Answer: d) Behavioral economics
Which economic theory suggests that the government should maintain a balanced budget and avoid budget deficits?
a) Keynesian economics
b) Monetarism
c) Neoclassical economics
d) Balanced budget theory
Answer: d) Balanced budget theory
Which economic theory argues that individuals and firms should be left free to pursue their self-interest without government interference?
a) Keynesian economics
b) Monetarism
c) Neoclassical economics
d) Free-market capitalism
Answer: d) Free-market capitalism
Which economic theory suggests that economic inequality is necessary to incentivize individuals to work hard and innovate?
a) Keynesian economics
b) Monetarism
c) Neoclassical economics
d) Trickle-down economics
Answer: d) Trickle-down economics
Which economic theory argues that government intervention in the economy can lead to unintended consequences and inefficiencies?
a) Keynesian economics
b) Monetarism
c) Neoclassical economics
d) Public choice theory
Answer: d) Public choice theory
