Question

Choose the correct statements from the following :
(A) Adam Smith is termed as Father of Modern Economics.
(B) J.M. Keynes gave the Theory of Income, Output and Employment.
(C) Four Sector Model = C + I + G + (X – M)
(D) Store of value is primary function of money.
Choose the correct answer from the options given below :

• A. (A), (B) and (D) only
• B. (A), (B) and (C) only
• C. (A), (B), (C) and (D)
• D. (B), (C) and (D) only

Answer 1

The Correct Option is B

Identify the correct economic statements from the given options. Each statement is analyzed as follows:

1. (A) Adam Smith is termed as Father of Modern Economics.
   This statement is accurate. Adam Smith's "The Wealth of Nations" established the principles of modern economics.
2. (B) J.M. Keynes gave the Theory of Income, Output and Employment.
   This statement is accurate. John Maynard Keynes formulated the Theory of Income, Output and Employment, a cornerstone of Keynesian economics.
3. (C) Four Sector Model = C + I + G + (X – M)
   This statement is accurate. The Four Sector Model of an open economy consists of Consumption (C), Investment (I), Government Spending (G), and Net Exports (X - M).
4. (D) Store of value is primary function of money.
   This statement is inaccurate. While money serves as a store of value, its primary function is as a medium of exchange.

Therefore, the correct statements are (A), (B), and (C). This corresponds to the answer choice: (A), (B) and (C) only.