The concept of 'Effective Demand' was introduced by: MCQ with Answer and Explanation

The concept of 'Effective Demand' was introduced by:
A. Classical economists
B. John Maynard Keynes
C. Monetarists
D. Supply-side economists
Answer: Option B
Solution (By JKSSB Mock Tests)
Keynes introduced the concept of effective demand, which is the level of aggregate demand that is equal to aggregate supply and determines the level of employment and output.

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Practice More Economy Set 1 Questions

Question #1
Which of the following is a characteristic of the 'Universal Basic Services' proposal?
A. Only targeted residual welfare
B. Only private provision of all services
C. Only cash transfers without any public services
D. Public provision of a range of essential services free at the point of use as a complement or alternative to basic income

Correct Answer: Option D


Explanation:
Universal basic services advocates the collective provision of a set of essential services—such as health, education, housing, transport and information—available to all citizens free or at low cost.

This question belongs to: Economy GK Economy Set 1
Question #2
In the context of money, 'Near Money' includes:
A. Currency notes and coins only
B. Time deposits, savings deposits and other highly liquid assets
C. Only demand deposits
D. Only gold reserves

Correct Answer: Option B


Explanation:
Near money refers to assets that are highly liquid and can be converted into cash quickly with minimal loss of value, such as time deposits and certain money market instruments.

This question belongs to: Economy GK Economy Set 1
Question #3
Price discrimination is most commonly possible under which market structure?
A. Perfect competition
B. Oligopoly
C. Monopolistic competition
D. Monopoly

Correct Answer: Option D


Explanation:
A monopolist can practise price discrimination because it has market power and can prevent resale.

This question belongs to: Economy GK Economy Set 1