3. A substantial increase in the rate of interest can cause:
Correct : C. all the above
4. Functional relationship between saving and disposable income is:
Correct : A. savingfunction
5. As the value of MPC increases, the value ofmultiplier:
Correct : B. increases
6. Who among the following pioneered the first real estimate of national income?
Correct : C. william petty
7. Who argued that national income issimply equal to “net product of agriculture”?
Correct : B. physiocrats
8. Who argued that “Everything that is produced in the course of a year, every service
rendered, every fresh utility brought about is a part of the national wealth.”?
Correct : C. alfred marshall
9. Who made the first major attempt to estimate national income in a somewhat
comprehensive manner?
Correct : C. simon kuznets
10. Consumption of capital good in the process of production is called as
Correct : B. depreciation
11. Which one of the following is roughly equal to national income?
Correct : B. nnp
12. Which one of the following includes ‘income ofresidents’?
Correct : B. nnp
13. Remittances made by NRIs to India in the context of national income accounting is
called as
Correct : C. factor payments
14. Who first introduced the concept of circular flow ofincome?
Correct : D. fancois quesnay
15. Which one in the following is a stock variable?
Correct : C. capital
16. Which one in the following is a flow variable?
Correct : D. gdp
17. Why do not the sale or purchase of used goods are not included in the GDP?
Correct : C. used goods are included in the previous gdp calculations
18. Inventories are unsold goods produced by a firm, then why do they are included in GDP?
Correct : C. they are purchases by the firm itself
19. The value of ‘intermediate goods’ are excluded from GDP calculation because:
Correct : B. it results in multiple counting of same value
20. Value added at each stage of production means:
Correct : A. value of output minus value of input
21. Imputed value of good is added to the GDP because:
Correct : B. there is no market price for that
22. GDP Deflator is also called as:
Correct : D. implicit price deflator
23. Personal Income includes:
Correct : A. dividend distributed
24. Disposable Income does not include:
Correct : B. income tax
25. Investment is reckoned by which method for computing GDP:
Correct : C. expenditure method
26. Adam Smith, the father of modern economic theory, defined economics as a subject,
which is mainly concerned with the study of nature and causes of generation of
Correct : A. wealth
27. introduced the concept of welfare in the study of economics:
Correct : B. alfred marshall
28. Who defined economics as: a science which studies human behavior as a relationship
between ends and scarce means which have alternative uses:
Correct : D. robbins
29. The problem of scarcity and choice making can be depicted using the tool of curve.
Correct : D. production possibility
30. Macroeconomicsis primarily concerned with aggregates. Which of the following is not
a macroeconomic aggregate?
Correct : A. decision making by a household
31. Scientific attempts to describe economic relationships are :
Correct : C. known as positive economics
32. The method consistsin deriving conclusionsfrom general truths, takesfew
general principles and applies them draw conclusions.
Correct : B. deductive
33. is a term referring to an intellectual controversy over epistemology, research
methodology between Carl Menger, and Gustav von Schmoller.
Correct : A. methodenstreit
34. Inductive method which also called empirical method was adopted by the:
Correct : D. historical school of economists
35. Decisions made in households, firms, and government are the focus of:
Correct : C. normative economics
36. Knowledge used to combine resources productively is called:
Correct : D. technology
37. Economic efficiency for the entire economy requires that :
Correct : D. all of the above
38. Theories are:
Correct : D. developed when we collect data, try to explain how things work, and then
39. Division of Labour is limited by the extent of:
Correct : D. market
40. Milton Friedman restated the :
Correct : C. quantity theory of money
41. If the value of a variable varies as a consequence of the variation in the value of some other variable, it is called:
Correct : B. endogenours v ariable
42. Saving is a function of:
Correct : D. income
43. In the classical theory the equlity between saving and investment is brought about by:
Correct : B. rate interest
44. Economic Laws are:
Correct : A. statement of tendencies
45. Which of the following concepts are most closely associated with J.M. Keynes?
Correct : D. marginal efficiency of capital
46. Which of the following is an example of economic overhead?