Classical economics is widely regarded as the first modern school of economic thought. Its major developers include Adam Smith, Jean-Baptiste Say, David Ricardo, Thomas Malthus and John Stuart Mill. John Maynard Keynes was a British economist whose ideas have profoundly affected the theory and practice of modern macroeconomics, and formed the economic policies of governments. He built on and greatly refined earlier work on the causes of business cycles, and is widely considered to be one of the founders of modern macroeconomics and the most influential economist of the 20th century. His ideas are the basis for the school of thought known as Keynesian economics, as well as its various offshoots.

Correct Option: D

Classical economics is widely regarded as the first modern school of economic thought. Its major developers include Adam Smith, Jean-Baptiste Say, David Ricardo, Thomas Malthus and John Stuart Mill. John Maynard Keynes was a British economist whose ideas have profoundly affected the theory and practice of modern macroeconomics, and formed the economic policies of governments. He built on and greatly refined earlier work on the causes of business cycles, and is widely considered to be one of the founders of modern macroeconomics and the most influential economist of the 20th century. His ideas are the basis for the school of thought known as Keynesian economics, as well as its various offshoots.

The services sector has the largest share in the GDP, accounting for 55% in 2007, up from 15% in 1950. Industry accounts for 28% of the GDP and employ 14% of the total workforce. Agriculture and allied sectors like forestry, logging and fishing accounted for 15.7% of the GDP in 2009–10.

Correct Option: D

The services sector has the largest share in the GDP, accounting for 55% in 2007, up from 15% in 1950. Industry accounts for 28% of the GDP and employ 14% of the total workforce. Agriculture and allied sectors like forestry, logging and fishing accounted for 15.7% of the GDP in 2009–10.

The figure of final private consumption expenditure includes the imputed gross rent of owner-occupied dwellings, consumption of own-account production and payment by households of wages and salaries in kind valued at cost, e.g., provision for food, shelter and clothing to the employees, wherever they exist. Production for self consumption is a part of production and hence an income and is also a part of final consumption expenditure.

Correct Option: B

The figure of final private consumption expenditure includes the imputed gross rent of owner-occupied dwellings, consumption of own-account production and payment by households of wages and salaries in kind valued at cost, e.g., provision for food, shelter and clothing to the employees, wherever they exist. Production for self consumption is a part of production and hence an income and is also a part of final consumption expenditure.

Per capita income or average income or income per person is the mean income within an economic aggregate, such as a country or city. It is calculated by taking a measure of all sources of income in the aggregate (such as GDP or Gross National Income) and dividing it by the total population. Measurement of personal income is the best measure of economic well-being of individuals and nation. Besides, it helps to show the level of inequality in a society or country.

Correct Option: D

Per capita income or average income or income per person is the mean income within an economic aggregate, such as a country or city. It is calculated by taking a measure of all sources of income in the aggregate (such as GDP or Gross National Income) and dividing it by the total population. Measurement of personal income is the best measure of economic well-being of individuals and nation. Besides, it helps to show the level of inequality in a society or country.

“Supply creates its own demand” is the formulation of Say’s law by John Maynard Keynes. The rejection of this doctrine is a central component of The General Theory of Employment, Interest and Money (1936) and a central tenet of Keynesian economics. Say’s Law (or Say’s Law of Markets), is often summa
rized as: “Aggregate supply creates its own aggregate demand”, “Supply creates its own demand”, “If you build it, they will come”, and Inherent in supply is the wherewithal for its own consumption”.

Correct Option: A

“Supply creates its own demand” is the formulation of Say’s law by John Maynard Keynes. The rejection of this doctrine is a central component of The General Theory of Employment, Interest and Money (1936) and a central tenet of Keynesian economics. Say’s Law (or Say’s Law of Markets), is often summa
rized as: “Aggregate supply creates its own aggregate demand”, “Supply creates its own demand”, “If you build it, they will come”, and Inherent in supply is the wherewithal for its own consumption”.