Which of the following is NOT a feature of the Keynesian theory? MCQ with Answer and Explanation

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Which of the following is NOT a feature of the Keynesian theory?

A. Possibility of underemployment equilibrium

B. Emphasis on effective demand

C. Importance of government intervention

D. Wage-price flexibility ensuring full employment

Answer: Option D

Solution (By JKSSB Mock Tests)

Keynes rejected the classical assumption of wage-price flexibility leading to automatic full employment. He argued that underemployment equilibrium is possible.

This question belongs to: Economy GK Economy Set 1

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Question #1

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The 'Pradhan Mantri Kisan Samman Nidhi' provides income support to all landholding farmer families, irrespective of landholding size.

A. False

B. Only for small farmers

C. Only for marginal farmers

D. True

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Correct Answer: Option D

Explanation:
PM-KISAN covers all landholding farmer families subject to certain exclusions, irrespective of landholding size.

This question belongs to: Economy GK Economy Set 1

Question #2

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In the context of public expenditure, 'Capital Expenditure' is characterised by:

A. Creation of assets or reduction of liabilities

B. Only payment of interest

C. No creation of assets

D. Only payment of salaries

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Correct Answer: Option A

Explanation:
Capital expenditure leads to the creation of assets (such as infrastructure) or reduction of liabilities (such as repayment of loans).

This question belongs to: Economy GK Economy Set 1