History of Economic Thought: Explore the Evolution of Economic Ideas

Question 1

Who is widely recognized as a pioneer in the development of the marginal utility theory?

Accepted Answer

William Stanley Jevons

Answer

Adam Smith

Answer

Karl Marx

Answer

John Maynard Keynes

Question 2

Who is referred to as the 'Father of Modern Economics' for his seminal work 'The Wealth of Nations'?

Accepted Answer

Adam Smith

Answer

Karl Marx

Answer

John Maynard Keynes

Answer

Milton Friedman

Question 3

Which prominent economist introduced the concept of the 'invisible hand' in economic systems?

Accepted Answer

Adam Smith

Answer

David Ricardo

Answer

Thomas Malthus

Answer

Jeremy Bentham

Question 4

Which economic theory focuses on the conflict between social classes and the exploitation of workers in capitalist societies?

Accepted Answer

Marxism

Answer

Keynesianism

Answer

Monetarism

Answer

Neoclassical Economics

Question 5

Who is credited with developing the 'General Theory of Employment, Interest, and Money', which revolutionized macroeconomic thought?

Accepted Answer

John Maynard Keynes

Answer

Milton Friedman

Answer

Friedrich Hayek

Answer

Joseph Schumpeter

Question 6

Which economic policy approach advocates for reducing government intervention and promoting free markets to stimulate economic growth?

Accepted Answer

Supply-side economics

Answer

Fiscal policy

Answer

Monetary policy

Answer

Demand-side economics

Question 7

Which economic indicator measures the average change in prices over time for a basket of goods and services commonly bought by consumers?

Accepted Answer

Consumer Price Index (CPI)

Answer

Gross Domestic Product (GDP)

Answer

Unemployment rate

Answer

Inflation rate

Question 8

Which economic model assumes that individuals make rational and self-interested decisions in economic activities?

Accepted Answer

Neoclassical economics

Answer

Behavioural economics

Answer

Institutional economics

Answer

Marxist economics

Question 9

Which economic theory highlights the influence of institutions, such as laws, customs, and organizations, on economic outcomes?

Accepted Answer

Institutional economics

Answer

Neoclassical economics

Answer

Keynesian economics

Answer

Marxist economics

Question 10

Which economic thinker emphasized the significance of innovation and technological advancements in driving economic growth?

Accepted Answer

Joseph Schumpeter

Answer

John Maynard Keynes

Answer

Milton Friedman

Answer

Karl Marx

Question 11

Which concept is a cornerstone of classical economic thought?

Accepted Answer

Laissez-faire

Answer

Class struggle

Answer

Effective demand

Answer

Monetarism

Question 12

Which economist is primarily associated with the 'Keynesian Revolution'?

Accepted Answer

John Maynard Keynes

Answer

Milton Friedman

Answer

Friedrich Hayek

Answer

Wassily Leontief

Question 13

A distinctive characteristic of behavioral economics is:

Accepted Answer

Incorporation of psychological insights into economic models.

Answer

Focus on purely rational decision-making by individuals.

Answer

Assumption of perfect information and perfectly competitive markets.

Answer

Emphasis on the need for government intervention in the economy.

Question 14

How did the Industrial Revolution impact the development of economic thought?

Accepted Answer

A combination of the above.

Answer

It led to the emergence of classical economics.

Answer

It challenged the dominant mercantilist system.

Answer

It contributed to the growth of socialist ideas.

Question 15

A key distinction between microeconomics and macroeconomics is:

Accepted Answer

Microeconomics focuses on individual markets, while macroeconomics focuses on the economy as a whole.

Answer

Microeconomics assumes perfect competition, while macroeconomics assumes imperfect competition.

Answer

Microeconomics utilizes supply and demand models, while macroeconomics employs Keynesian models exclusively.

Answer

Microeconomics is more relevant to businesses, while macroeconomics is more applicable to governments.

Question 16

What is the primary purpose of economic modeling?

Accepted Answer

To simplify and represent economic relationships.

Answer

To generate unfailingly accurate predictions about the future.

Answer

To provide justification for government policies.

Answer

To eliminate the need for empirical data.

Question 17

Who is widely regarded as the founder of modern economics?

Accepted Answer

Adam Smith

Answer

John Maynard Keynes

Answer

Karl Marx

Answer

Milton Friedman

Question 18

Which economist developed the theory of marginal utility, which explains how consumers make choices based on the additional satisfaction they expect to receive from consuming an extra unit of a good?

Accepted Answer

William Jevons

Answer

Alfred Marshall

Answer

Leon Walras

Answer

Friedrich Hayek

Question 19

Keynesian economics is known for its emphasis on the role of which of the following in stimulating economic activity?

Accepted Answer

Fiscal policy

Answer

Monetary policy

Answer

Supply-side policies

Answer

Laissez-faire

Question 20

Which economic school of thought advocates for minimal government intervention in the economy, believing that free markets can allocate resources efficiently?

Accepted Answer

Classical economics

Answer

Marxist economics

Answer

Keynesian economics

Answer

Monetarism

Question 21

The concept of the 'invisible hand' was introduced by which economist to describe how the self-interested actions of individuals can unintentionally benefit society as a whole?

Accepted Answer

Adam Smith

Answer

David Ricardo

Answer

Thomas Malthus

Answer

John Stuart Mill

Question 22

Which economist coined the term 'dismal science' to describe economics due to its focus on the challenges of scarcity and resource allocation?

Accepted Answer

Thomas Malthus

Answer

David Ricardo

Answer

John Maynard Keynes

Answer

Alfred Marshall

Question 23

The Phillips Curve illustrates the historical relationship between which two macroeconomic variables?

Accepted Answer

Inflation and unemployment

Answer

Interest rates and inflation

Answer

Economic growth and unemployment

Answer

Fiscal policy and monetary policy

Question 24

Which economist argued that capitalism, due to its inherent contradictions, inevitably leads to increasing inequality and class conflict?

Accepted Answer

Karl Marx

Answer

Friedrich Engels

Answer

Vladimir Lenin

Answer

Antonio Gramsci

Question 25

New Classical Economics, which emerged in the latter half of the 20th century, emphasizes the significance of which factor in economic growth and stability?

Accepted Answer

Supply-side policies

Answer

Keynesian stimulus

Answer

Monetary expansion

Answer

Government intervention

Question 26

Who is widely regarded as the 'father of economics' due to his pioneering work in the field?

Accepted Answer

Adam Smith

Answer

Karl Marx

Answer

John Maynard Keynes

Answer

Milton Friedman

Question 27

Which philosopher proposed the influential labor theory of value, stating that the exchange value of a commodity is determined by the labor required to produce it?

Accepted Answer

Karl Marx

Answer

Aristotle

Answer

Plato

Answer

David Ricardo

Question 28

Who is credited with developing the concept of 'marginal utility', which became a cornerstone of the marginalist revolution in economics?

Accepted Answer

William Stanley Jevons

Answer

Alfred Marshall

Answer

Léon Walras

Answer

Friedrich Hayek

Question 29

Which economist is associated with advocating for active government intervention in the economy during the Great Depression, emphasizing the importance of aggregate demand?

Accepted Answer

John Maynard Keynes

Answer

Milton Friedman

Answer

Friedrich Hayek

Answer

Joseph Schumpeter

Question 30

Who is known for developing the 'efficient market hypothesis', which posits that financial markets are highly efficient and rapidly incorporate new information?

Accepted Answer

Eugene Fama

Answer

Paul Samuelson

Answer

Robert Lucas

Answer

Gary Becker

Question 31

Which school of thought in economics places a strong emphasis on the role of institutions and cultural factors in shaping economic outcomes?

Accepted Answer

Institutional economics

Answer

Behavioral economics

Answer

Marxian economics

Answer

Austrian economics

Question 32

Who is widely acknowledged as the father of modern economics?

Accepted Answer

Adam Smith

Answer

Karl Marx

Answer

John Maynard Keynes

Answer

Milton Friedman

Question 33

Which of the following is a fundamental concept introduced by classical economists like Adam Smith?

Accepted Answer

Invisible hand

Answer

Class struggle

Answer

Aggregate demand

Answer

Keynesian multiplier

Question 34

Which economist famously argued that capitalism contains the seeds of its own destruction, leading to socialism?

Accepted Answer

Karl Marx

Answer

David Ricardo

Answer

Thomas Malthus

Answer

Joseph Schumpeter

Question 35

Who introduced the concept of the 'liquidity trap' in macroeconomics?

Accepted Answer

John Maynard Keynes

Answer

Milton Friedman

Answer

Irving Fisher

Answer

Ludwig von Mises

Question 36

Who is associated with developing the concept of 'creative destruction' in economic growth theory?

Accepted Answer

Joseph Schumpeter

Answer

John Hicks

Answer

Paul Samuelson

Answer

Friedrich Hayek

Question 37

Who is widely regarded as the father of modern economics?

Accepted Answer

Adam Smith

Answer

David Ricardo

Answer

Karl Marx

Answer

John Maynard Keynes

Question 38

According to the classical theory of value, what determines the value of goods and services?

Accepted Answer

The amount of labour required to produce them

Answer

The utility they provide to consumers

Answer

The scarcity of the resources used to produce them

Answer

The supply and demand for them

Question 39

Which of the following is NOT typically considered a benefit of globalisation?

Accepted Answer

Environmental protection

Answer

Increased trade and economic growth

Answer

Spread of ideas and culture

Answer

Widening income inequality

Question 40

Who is widely recognized as the father of modern economics?

Accepted Answer

Adam Smith

Answer

Karl Marx

Answer

John Maynard Keynes

Answer

Milton Friedman

Question 41

Which economic theory advocates for limited government intervention and reliance on free markets?

Accepted Answer

Classical economics

Answer

Marxian economics

Answer

Keynesian economics

Answer

Monetarism

Question 42

Who is credited with developing the concept of marginal utility?

Accepted Answer

William Jevons

Answer

Alfred Marshall

Answer

Léon Walras

Answer

Friedrich Hayek

Question 43

Which economist introduced the concept of 'effective demand' into economic analysis?

Accepted Answer

John Maynard Keynes

Answer

Adam Smith

Answer

Karl Marx

Answer

Milton Friedman

Question 44

Who is most closely associated with the Quantity Theory of Money?

Accepted Answer

Irving Fisher

Answer

John Maynard Keynes

Answer

Milton Friedman

Answer

Joseph Schumpeter

Question 45

Which economic theory emphasizes the role of technological innovation in economic growth and development?

Accepted Answer

Schumpeterian economics

Answer

Classical economics

Answer

Marxian economics

Answer

Keynesian economics

Question 46

Which economic theory highlights the significance of institutions and culture in shaping economic outcomes?

Accepted Answer

Institutions and Culture Economics

Answer

Behavioural Economics

Answer

Experimental Economics

Answer

Neuroeconomics

Question 47

Identify the figure who is not considered a key figure in the development of classical economics.

Accepted Answer

Karl Marx

Answer

Adam Smith

Answer

David Ricardo

Answer

Thomas Malthus

Question 48

According to Keynesian economics, which policy is seen as the most effective in encouraging economic growth?

Accepted Answer

Increasing government expenditure

Answer

Reducing government expenditure

Answer

Increasing interest rates

Answer

Reducing taxes

Question 49

Which concept is central to the field of institutional economics?

Accepted Answer

Transaction costs

Answer

Rational expectations

Answer

Marginal utility

Answer

Perfect competition

Question 50

Explain the fundamental distinction between positive and normative economics.

Accepted Answer

Normative economics makes value judgments, while positive economics does not.

Answer

Positive economics makes value judgments, while normative economics does not.

Answer

Positive economics is based on data, while normative economics is based on theory.

Answer

Normative economics is based on data, while positive economics is based on theory.

Question 51

Which assumption is fundamental to the efficient market hypothesis?

Accepted Answer

Asset prices reflect all available information.

Answer

Investors are rational and unemotional.

Answer

Markets are always in a state of equilibrium.

Answer

Past performance is a reliable predictor of future results.

Question 52

Explain the key difference between microeconomic and macroeconomic models.

Accepted Answer

Microeconomics focuses on individual markets, while macroeconomics focuses on the economy as a whole.

Answer

Macroeconomics focuses on individual markets, while microeconomics focuses on the economy as a whole.

Answer

Microeconomics is based on individual choices, while macroeconomics is based on collective choices.

Answer

Macroeconomics is based on individual choices, while microeconomics is based on collective choices.

Question 53

What is the primary objective of behavioral economics?

Accepted Answer

Understanding the influence of psychology on economic decisions

Answer

Developing more precise economic models

Answer

Predicting future economic behavior

Answer

Enhancing economic growth

Question 54

Which of the following is NOT a key tenet of classical economics?

Accepted Answer

Support for government intervention in the economy

Answer

Emphasis on individual self-interest

Answer

Belief in the 'invisible hand' of the market

Answer

Assumption of rational economic behavior

Question 55

Who is widely recognized as the 'Father of Keynesian Economics'?

Accepted Answer

John Maynard Keynes

Answer

Adam Smith

Answer

David Ricardo

Answer

Milton Friedman

Question 56

Which of the following is a primary criticism of Marx's labor theory of value?

Accepted Answer

It overlooks the role of supply and demand in determining prices

Answer

It assumes that all workers are paid equally

Answer

It fails to account for technological advancements

Answer

It is based on a flawed understanding of human nature

Question 57

Who is considered the founder of institutional economics?

Accepted Answer

Thorstein Veblen

Answer

Alfred Marshall

Answer

John Kenneth Galbraith

Answer

Friedrich Hayek

Question 58

Who is widely considered the father of economics?

Accepted Answer

Adam Smith

Answer

Aristotle

Answer

Karl Marx

Answer

John Maynard Keynes

Question 59

Which economic school of thought emphasized the importance of free markets and limited government intervention?

Accepted Answer

Classical Economics

Answer

Marxism

Answer

Keynesian Economics

Answer

Monetarism

Question 60

What is the primary methodological approach in behavioural economics?

Accepted Answer

Psychological experiments

Answer

Mathematical modelling

Answer

Historical analysis

Answer

Econometric analysis

Question 61

Which concept is central to the theory of comparative advantage?

Accepted Answer

Specialization

Answer

Absolute advantage

Answer

Terms of trade

Answer

Opportunity cost

Question 62

How does nominal GDP differ from real GDP?

Accepted Answer

Nominal GDP includes inflation, while real GDP does not.

Answer

Real GDP includes inflation, while nominal GDP does not.

Answer

They are calculated using entirely different formulas.

Answer

There is no distinction between them.

Question 63

What is a major criticism of the neoclassical economic model?

Accepted Answer

It ignores externalities.

Answer

It assumes rational behaviour.

Answer

It overemphasizes the role of government.

Answer

It utilizes outdated data.

Question 64

Which female economist made notable contributions to monetary theory?

Accepted Answer

Joan Robinson

Answer

Harriet Martineau

Answer

Rosa Luxemburg