HET Preparation PDF

1. Find three classes of the economy that Physiocrats identified. A. "productive", "sterile", "proprietor" B. "productive", "proprietor", "merchants" C. "sterile", "proprietor", "crafts" D. "productive", "sterile", "philosphers" 2. What is Quesnay`s renowned "zig-zag" depiction of income flows...

1. Find three classes of the economy that Physiocrats identified. A. "productive", "sterile", "proprietor" B. "productive", "proprietor", "merchants" C. "sterile", "proprietor", "crafts" D. "productive", "sterile", "philosphers" 2. What is Quesnay`s renowned "zig-zag" depiction of income flows between economic sectors? A. Essays B. Economic diagram C. Economic table D. Circular flow diagram 3. In Islamic finance this is the simplest financing method. Two (or more) people pool their resources in a joint venture, participate in its management and share the profits and losses on a pre-determined basis. A. Musharaka B. Mudarabah C. Murabaha D. Ijara wa iktina 4. In Islamic finance it is also known as the Commenda in Europe, this form of financing operates as a kind of mutual fund. One party puts up the capital, the other puts in the entrepreneurial skill. A. Musharaka B. Murabaha C. Mudarabah D. Ijara wa iktina 5. In Islamic finance the financier acts as the purchasing agent for the borrower, and then sells the goods to the borrower with a fixed mark-up on the purchase price A. musharaka B. ijara wa iktina C. mudarabah D. murabaha 6. Which one is A.Smith’s major scientific work? A. The theory of "moral character" B. "Wealth of nations" C. "Capital" D. "What is property?" 7. Who created the "comparative advantage" theory in international trade? A. A. Smith B. F. Quesnay C. T. Malthus D. D. Ricardo 8. Fill the space: French Mercantilism is better known as.... A. "Bullionist" B. "Cameralism" C. "Colbertisme" D. "Liberal" 9. Fill the space: German Mercantilism is better known as.... A. "Liberal" B. "Bullionist" C. "Cameralism" D. "Colbertisme" 10. Which economic school investigated "Dutch puzzle" A. Neoliberalism B. Neoclassic C. Merchantilism D. Marginalism 11. Indicate D.Ricardo's economic shcool. A. Neoliberalism B. Neoclassic C. Merchantilism D. Classic 12. Which school is A.Smith from? A. Neoliberalism B. Neoclassic C. Merchantilism D. Classic 13. Which school is M.Friedman from? A. Monetarism B. Neoclassic C. Merchantilism D. Classic 14. Which school is W.Stafford from? A. Monetarism B. Neoclassic C. Merchantilism D. Classic 15. Fill the gap: _________ is the ability to produce more than competitor. A. Absolute advantage B. Comparative advantage C. Laissez-faire D. Marginal cost 16. Fill the gap: _________ is a policy of minimum governmental interference in the economic affairs of individuals and society. A. Absolute advantage B. Comparative advantage C. Laissez-faire D. Marginal cost 17. Who was Vilfredo Pareto? A. An Italian artist B. An American economist C. An Italian economist D. A French philosopher 18. What was Pareto's contribution to economics? A. He was a leader of the Keynesian revolution B. He developed the idea of game theory C. He proposed the theory of comparative advantage D. He developed general equilibrium theory 19. What is Pareto Efficiency? A. An economic state where resources can be reallocated to make everyone better off B. An economic state where resources cannot be reallocated to make one individual better off without making another individual worse off C. An economic state where resources are distributed equally among individuals D. An economic state where resources are not being used efficiently 20. Choose Alfred Marshall's school? A. Neoliberalism B. Neoclassic C. Merchantilism D. Marginalism 21. What is Alfred Marshall known for? A. Founding the "Chicago" school of economics B. Propagating Marxist economics C. Founding the "Cambridge" school of Neoclassicism D. Introducing the concept of behavioral economics 22. Which of Alfred Marshall's books was the most successful textbook? A. The Wealth of Nations B. Capital in the Twenty-First Century C. Das Kapital D. Principles of Economics 23. When was Alfred Marshall's Principles of Economics published? A. July, 1890 B. July, 1900 C. July, 1910 D. July, 1920 24. What does "Marshallian scissors" mean? A. Demand and supply B. Saving and consumption C. Needs and wants D. Value and price 25. "State officials should be replaced frequently to prevent from abusing of their positions". In which historical source the idea above can be found? A. The Hamurabbi Code B. The Arthashastra C. Laws of Eshnunna D. Quran 26. Who were the prominent economists associated with the American Institutionalist School? A. Adam Smith and David Ricardo B. Karl Marx and Friedrich Engels C. Thorstein Veblen, John Commons and Wesley Mitchell D. Milton Friedman and Friedrich Hayek 27. Fill the space: …. the duty of regular charity, was enforced and took a substantial bite out of profits. A. Usury B. Zakat C. Jizyah D. Kharaj 28. Fill the space: … is a tax levied on each individual, or “head” paid by non-Muslim dhimmis (Jews and Christians). A. Zakat B. Kharaj C. Ushr D. Jizyah 29. Fill the space: … is the tax on the produce of lands conquered in the course of the expansion of Islam, but kept in the hands of non-Muslim tillers. A. Kharaj B. Ushr C. Jizyah D. Zakat 30. Fill the space: … is one tenth of annual produce or earnings, formerly taken as a tax for the support of the Church and clergy. A. Kharaj B. Jizyah C. Zakat D. Ushr 31. According to Veblen, what is the function of advertising? A. To inform consumers about products B. To create a desire for goods that display status and prestige C. To lower the price of products D. To increase competition between firms 32. What is Edward H. Chamberlin's contribution to economic theory? A. The theory of comparative advantage B. The theory of perfect competition C. The theory of monopolistic competition D. The theory of supply and demand 33. Where did Chamberlin receive his education and who was his mentor? A. Harvard, under Allyn A. Young B. Yale, under John Bates Clark C. Princeton, under Paul Samuelson D. Columbia, under Milton Friedman 34. With which economic schools was Joan Robinson associated during her career? A. The Austrian School and the Chicago School B. The Cambridge School and the Neo-Ricardian and Post Keynesian schools C. The Lausanne School and the Institutionalist School D. The Monetarist School and the New Classical School. 35. What theory did Joan Robinson introduce to economics? A. Perfect competition B. Monopoly C. Imperfect competition D. Monopolistic competition -- Chamberlin 36. Who independently discovered a similar theory of imperfect competition emphasizing product differentiation? A. Alfred Marshall B. John Bates Clark C. Edward Chamberlin D. Wesley Mitchell 37. Who is John Maynard Keynes? A. British economist B. American politician C. French philosopher D. Russian novelist 38. Indicate the main book of J.M.Keynes? A. The Wealth of Nations B. Das Kapital C. The General Theory of Employment, Interest and Money D. The Communist Manifesto 39. What is the impact of Keynes' book, The General Theory of Employment, Interest and Money? A. It changed the way the world looked at the economy and the role of government in society B. It caused a global economic crisis C. It was ignored by economists and policymakers D. It was banned in several countries for its controversial ideas. 40. Which of the following statements best represents Keynes' view on the capitalist economy during the Great Depression? A. The capitalist economy is always stable and will eventually achieve equilibrium without government intervention. B. The capitalist economy is inherently stable but may experience short-term fluctuations that are self- correcting. C. The capitalist economy is inherently unstable and may experience persistent unemployment or severe inflation without government intervention. D. The capitalist economy is always unstable and requires constant government intervention to achieve equilibrium. 41. What is the principle of effective demand in Keynesian theory? A. The idea that supply creates its own demand B. The belief that government intervention is unnecessary in achieving full employment C. The notion that the economy is inherently stable and always self-correcting D. The concept that aggregate demand equals aggregate supply 42. How is effective demand expressed in an economy? A. By the level of aggregate supply B. By the price level of goods and services C. By the aggregate expenditure of an economy D. By the level of income distribution in the economy 43. What is the market for loanable funds? A. A market for consumer loans B. A market for goods and services C. A market for investable resources D. A market for factors of production 44. What does the term "marginal propensity to consume" refer to? A. The fraction of a change in income that is saved. B. The fraction of a change in income that is consumed. C. The rate of interest on loans. D. The level of aggregate demand. 45. Who was Friedrich A. von Hayek's great rival? A. John Maynard Keynes B. Ludwig von Mises C. Eugen von B?hm-Bawerk D. Carl Menger 46. In which tradition was Friedrich A. von Hayek trained? A. Keynesian economics B. Classical economics C. Austrian economics D. Marxist economics 47. Who was the philosopher that Marx was particularly impressed by, in relation to their philosophy lectures? A. Bruno Bauer B. Hilderbrand C. Fridrix D. no answer 48. What is the full form of the APP? A. Average period of production B. average production of period C. A and B D. no answer 49. Who was the American Neoclassical economist and professor of economics at Columbia who became one of the leading figures of the Marginalist Revolution? A. Hilderbrand B. John Bates Clark C. Karl Marx D. no answer 50. Who is considered wars important in the transition from agriculture to industry? A. Fridrix List B. Karl Marx C. Engel Thompson D. B and C 51. When did Adam Smith live and work? A. 1723-1790 B. 1624-1690 C. 1822-1888 D. 1719-1799 52. Choose the economist who belongs to German historical school. A. A.Smith -- Classic B. K.Marx C. L.Walras D. J.Clark 53. Choose the economist who was born in 1818. A. A.Smith B. D.Ricardo C. K.Marx D. F.Quesnay 54. Who is the author of “alienation” theory? A. K.Marx B. A.Smith C. B.Hildebrand D. F.Quesnay 55. Choose the correct definition of “alienation” theory. A. In a free market economy, self-interested individuals operate through a system of mutual interdependence B. The estrangement of people from aspects of their human nature C. An economy's ability to produce a particular good or service at a lower opportunity cost than its trading partners D. Income flow among economic sectors 56. Fill the gap. Marx and Engels argued that was not an obstacle consciousness, the real obstacle was _______. A. The roots of alienation B. Invisible hand C. Utility D. Capital 57. Choose the book that describes “class struggle”. A. Wealth of nations B. Economic table C. Principles of economics D. Communist manifesto 58. Choose the economist who did not believe in natural "economic laws". A. F.Roscher B. W.Petty C. B.Hildebrand D. G.Schmoller 59. Choose the economists who belong to German historical school. A. A.Smith, D.Ricardo, W.Petty B. F.Quesnay, Pierre de Nemours, J.Turgot C. T.Mun, J.Colbert, J.Mill D. K.Marx, G.Schmoller, F.Roscher 60. Choose the economist who argued with Pareto about “not existence of economic laws” at conference in Geneva. A. G.Schmoller B. F.List C. B.Hildebrand D. F.Wieser 61. Fill the gap. _______ is the level of satisfaction a person derives from consuming a good or service. A. Egoism B. Opportunity cost C. Utility D. Demand 62. Who is one of the leaders of the "Marginalist Revolution" of the 1870s? A. K.Marx B. C.Menger C. A.Marshall D. M.Fridman 63. Who gave a definition to price as "symptoms of an equilibrium between individuals involved in an exchange process”? A. A.Marshal B. E.Böhm-Bawerk C. S.Jevons D. C.Menger 64. Exclude the economist who does not belong to the Austrian school. A. B.Hildebrand B. E.Böhm-Bawerk C. L.Walras D. C.Menger 65. What is the meaning of marginal utility? A. symptoms of an equilibrium between individuals involved in an exchange process B. the level of satisfaction a person derives from consuming a good or service -- Utility C. the level of satisfaction gained from consuming one additional unit of a product or service D. The estrangement of people from aspects of their human nature 66. Which economic school studies economic processes in terms of marginality? A. Mercantilism B. Neoclassic C. Classic D. Marginalism 67. What is the unit of measure of the level of satisfaction a person derives from consuming a good or service A. Cost B. Utile C. Pleasure D. Price 68. Choose the author of “Positive theory of capital” A. K.Marx B. A.Smith C. E.Böhm-Bawerk D. A.Marshall 69. Find the common of the representatives of the German school A. Mainly came from affluent family B. Wrote the same book C. thought opposite to each other D. born in the same city 70. What does an embodied theory refer to in the context of commodity production? A. the amount of labor B. the amount of sources C. the amount of value D. no answer 71. Where and when was Friedrich von Wieser born? A. Venice, 1851 B. Vienna, 1851 C. Liverpool,1847 D. Austria, 1858 72. What are the Wieser's two main contributions? A. alternative cost, opportunity cost B. roundabout, dimension C. input, output D. no correct answer 73. Who wrote the Principles of Economics in 1871? A. Karl Marx B. Carl Menger C. Stanley Jevons D. no correct answer 74. Who is the founder of Austrian School of Economics? A. Carl Menger B. Stanley Jevons C. Karl Marx D. Joseph Schumpeter 75. What is the definition of a "good" according to Karl Menger ideas? A. alternative costs B. opportunity costs C. subject to cause and effect D. useful thing employed in the satisfaction of human needs. 76. What did Bohm-Bawerk describe as the process of investment into labor and land? A. dimension B. input C. roundabout D. output 77. What is another name of "Austrian School" A. Vienna school B. Friedrich school C. Eugen school D. Revolution school 78. By whom Leon Walras has been hailed as "the greatest of all economists"? A. Joseph Schumpeter B. Stanley Jevons C. Carl Menger D. no answer 79. Who argued that there was a connection between the timing of commercial crises and the solar cycle? A. Carl Menger B. Leon Walras C. Joseph Schumpeter D. William Stanley Jevon – SUNSPOT theory 80. Who published "Elements of pure economics"? A. Leon Walras B. Carl Menger C. William Stanley D. Joseph Schumpeter 81. Who is the father of general equilibrium theory? A. Carl Menger B. Leon Walras C. Joseph Schumpeter D. William Stanley Jevons 82. Who is the American Neoclassical economist and professor of economics at Columbia known for being one of the leading figures of the Marginalist Revolution? A. John Bates Clark B. Carl Menger C. William Stanley D. Joseph Schumpeter 83. “Achieving a positive balance of trade causes England's wealth to steadily increase”, “foreign trade was the best way to increase the wealth of a nation”,- who is the author of the statements above? A. William Stafford B. Thomas Mun C. Jean Charles D. William Stanley 84. Who invited in workmen from foreign countries, and prohibited French workmen from emigrating? A. John Stuart Mill B. Keyne C. Hayek D. Jean-Baptiste Colbert 85. Who was expelling foreign merchants from France as much as possible and giving local merchants a monopoly on foreign trade? A. William Stanley B. David Ricardo C. Antoine de Montchrestien D. John Maynard 86. Which country’s importation was prohibited by William Stafford? A. England B. The USA C. Germany D. Russia 87. Which concept in the options belong to John Lo? A. inviting in workmen from foreign countries, and prohibited French workmen from emigrating B. Supply creates own demand C. avoiding anarchy in industry and focusing on planned central management D. a small increase in the price of goods leads to a large increase in the supply of goods 88. Which one refers to the school of thought of economics that originated in the late 18th and early 19th centuries, especially in Britain? A. classical economics B. political economics C. classical political economics D. No answer 89. What does Classical economics focus on? A. Demand drives supply and that healthy economies spend or invest more than they save B. Market prices should be fixed by the consumers/business owners operating there, without any government interference C. Economic growth and economic freedom, advocating laissez-faire ideas and belief in free competition D. The wealth of nations derived solely from the value of "land agriculture" 90. What did the classical economic theory propagate the countries? A. all important jobs should be open to women on the basis of skill and aptitude rather than closed on account of gender B. wars important in the transition from agriculture to industry C. alternative theories and ideas about the central issues of our day, including economic instability, central planning, and the operation of the political process. D. to move from the monarch rule to a capitalis the classical economic theory propagated the countries to democracy factored with self-regulation 91. Who believed the statement “Wages should be paid at a level that covers living minimum”? A. William Petty B. John Stuart Mill C. Jaques Turgot D. Anri Sen-Simon 92. What does Adam Smith describe as “The unintended greater social impacts brought about by individuals acting in their own self-interests”? A. Wars B. Pandemic C. classic school D. Invisible hand 93. Who believed that “Comparative advantage” theory is an economy's ability to produce a particular good or service at a lower opportunity cost than its trading partners? A. David Ricardo B. Jaques Turgot C. John Stuart Mill D. Jean Charles Leonard 94. How would be population growth whereas food resources would only grow in arithmetic progression according to Thomas Malthus’s beliefs? A. biometric B. geometric C. arithmetic D. geographic 95. What can not be seen as a measure to prevent overpopulation according to Thomas Malthus’s beliefs? A. High standard of living B. Later marriage C. Famine D. Wars 96. What language did the word Physiocracy originally come from? A. Latin B. German C. Greek D. French 97. Who has trusted the idea “the wealth of nations derived solely from the value of "land agriculture" or "land development"”? A. American philosophers B. Chinese economists C. French economists D. Russian politicians 98. Which concept originated in France and were most popular during the second half of the 18th century? A. the wealth of nations derived solely from the value of "land agriculture" or "land development" B. The amount of money in an economy must be equal to the quantity of goods and services C. demand drives supply and that healthy economies spend or invest more than they save D. the central issues of our day, including economic instability, central planning, and the operation of the political process 99. Whose opinion is “the personal interest of others should not be separated from the interests of society”? A. Anri Sen-Simon B. Franqois Quesnay C. Carl Marx D. William Stanley 100. Who trusted the concept “The main source of wealth comes from agriculture”? A. Fridrix List B. Franqois Quesnay C. Alfred Marshall D. Thoristein Veblaen 101. Which statements belong to Jaques Turgot? A. The amount of money in an economy must be equal to the quantity of goods and services B. Wages should be paid at a level that covers living minimum C. “Comparative advantage” theory is an economy's ability to produce a particular good or service at a lower opportunity cost than its trading partners D. the wealth of nations derived solely from the value of "land agriculture" or "land development" 102. Who suggests avoiding anarchy in industry and focusing on planned central management? A. David Ricardo B. John Gerbreit C. John Maynard D. Anri Sen-Simon 103. According to Charles Fourier’s opinions, for whom all important jobs should be open on the basis of skill and aptitude? A. Unemployment B. Men C. Women D. Youngster 104. Fourier saw that what could potentially hurt woman's rights as human beings? A. traditional marriage B. Being jobless C. Being careless D. Aggression 105. Who argue that demand drives supply and that healthy economies spend or invest more than they save? A. Japan economicts B. German scientists C. Russian politicians D. Keynesian economics 106. Which scientists searched on evolution of modern economic views (Neoliberalism and Monetarism)? A. F.Hayek B. M.Friedman C. L.Erhard D. All answers are correct 107. How do we know Ludwig Wilhelm Erhard? A. competition where possible, regulation where necessary B. He is known for leading the West German postwar economic reforms and economic recovery (German for "economic miracle") C. one of the giants of the economics profession D. First Nobel-prizer in economics 108. Who is the founder of the American economic School? A. J.B. Clark B. A. Marshall C. J.B. Say D. D. Ricardo 109. Founder of Institutionalism school ______. A. T. Weblen B. A. Smith C. D. Ricardo D. A. Marshall. 110. To which school does term of "utility" belong to? A. Classical doctrine B. Monetarism C. Marginalism D. Mercantilism 111. Which economist created the "Economic Table"? A. F.Quesnay B. A.Turgot C. A.Smith D. D.Ricardo 112. Founder of the concept of "Invisible Hand"? A. D.Ricardo B. A.Smith C. F.Quesnay D. D.Hume 113. What were the main ideas of the Physocrats? A. Development of production B. Development of agriculture C. Development of industry D. Resistance to agricultural development 114. What type of tax was considered important by the Physocrats? A. Property tax B. Slave tax C. Farm tax D. Land tax. 115. The wealth of a nation, ________ argued, lies in the size of its net product. A. Adam Smith B. Francois Quesnay C. David Ricardo D. William Petty 116. "IS-LM" model was introduced by ______. A. Thorstein Veblen B. John Commons C. Alfred Marshall D. John Maynard Keynes 117. The word “Oeconomicus” means: A. a household management B. agricultural law C. manufactory D. management 118. Which economist supported the state's intervention in the economy? A. A. Marshall B. J.M. Keynes C. D. Ricardo D. A. Smith 119. How many stages of development occured in mercantilism? A. 3 B. 1 C. 5 D. 2 120. Which of the following is the policy of mercantilism? A. Neoliberalism B. Market economy C. Protectionism D. Democracy 121. Fill the gap: According to W.Petty “Labor is the father of wealth, __________ is its mother” A. Land B. Capital C. Business D. Democrac