Keynes and his theories

If the price increases by 10% and demand decreases by 10%, this is called
1. Inelasticity
2. Negative Elasticity
3. Unit elasticity
If the price goes down by 10% and the sales go down by 5%, this is called
1. Positive elasticity
2. Negative elasticity
3. Unit elasticity
If the price increases by 20% and sales diminish by 40%, then
1. E = -4
2. E = -2
3. E = +2
A poor person is likely to have
1. a high MPX
2. a high MPS
3. a high MPC
A tax reduction for the rich will have
1. a high multiplier effect
2. a low multiplier effect
3. no multipler effect
If someone earns an extra 1,000€ and spends 20% of it, his
1. MPC is 80%
2. MPS is 80%
3. MPC is 20%
Keynes's book following the Versailles Treaty was called
1. The Economic Consequences of the Peace
2. The Impossibility of German Reparation Payments
3. The March towards a New Europe
Bretton Woods saw the creation of
1. the International Monetary Fund, the World Bank and the World Trade Organisation
2. the United Nations, the World Bank and the International Monetary Fund
3. the International Monetary Fund, the World Bank and the General Agreement on Tarifs and Trade
At Bretton Woods, Keynes negotiated with
1. Roosvelt
2. Harold Dexter White
3. the 44 countries present
Which of these would have the highest multiplier effect?
1. Building a new hospital in Angers with Swedish workers and Chinese material
2. Building a new hospital in Angers with French workers and French material
3. Building a new hospital in Angers with French workers and German material
If sales are 100, E is -2 and I increase the price by 10%, my new sales will be
1. 120
2. 90
3. 80
If the price of beer increases and the sales of cider increase, this is called
1. Cross-elasticity
2. Unit elasticity
3. Negative elasticity
At Bretton Woods
1. National currencies were tied to gold
2. National currencies were tied to the dollar
3. National currencies were tied to the Bancor
Pigou suggested
1. Taxing negative externalities
2. Taxing the rich progressively
3. Increasing VAT on luxury goods
The New Deal was based on
1. Rescuing the banks that were failing
2. Providing jobs for millions of unemployed people
3. Subsidising companies to employ people
The Bancor was designed to be
1. a virtual currency used for international trade
2. tied to the dollar at a fixed rate
3. the new worldwide currency
The Americans won the battle of Bretton Woods because
1. they had over 70% of world gold
2. the ideas were better than those of Keynes
3. worldwide economists preferred the American solution
Under Keynes's Bancor system, a country with an excess Trade Balance should
1. Buy gold with its excess currency
2. Decrease the value of its currency against the Bancor
3. Increase the value of its currency against the Bancor
Keynes taught in the
1. Cambridge School of economics
2. Chicago School of economics
3. London School of Economics
Income elasticity measures
1. the change of purchasing behaviour when income changes
2. the level of spending after getting a pay rise
3. the marginal effect of price increases on total income

Keynes and his theories

Keynesian Economics and Politics