1. Who is credited with bringing the term "the invisible hand" in economics?
Correct : A. adam smith
2. Macroeconomics as a separate branch came to be studied after the contributions of which
economist?
Correct : B. john maynard keynes
3. When did the Great Depression hit the United States?
Correct : B. 1929
4. Macroeconomics is a study of economics that deals with which 4 major factors:
Correct : B. households, firms, government and external sector
5. What are consumption goods?
Correct : C. goods and services that are consumed fully when purchased by the consumers
6. What are Capital goods?
Correct : B. goods such as tools, machinery, etc which are used to create final consumer goods
7. What does the term Gross investment mean while denoting a nation's economy?
Correct : A. gross investment= net investment + depreciation
8. What does the term free-market denote in terms of economy?
Correct : A. minimal government intervention in trade and minimum regulations
9. ___________economics can study the problem of Inflation in the country.
Correct : B. macro
10. The credit of development of macroeconomic approach must go to ________.
Correct : C. lord keynes
11. Macroeconomics does not study _________.
Correct : D. product pricing)
12. _________ is the subject matter of Macroeconomics.
Correct : A. growth theory
13. Micro and Macro approaches are ________.
Correct : D. complementary
14. For economists, statements about the world are of two types:
Correct : C. positive statements and normative statements
15. In a market economy:
Correct : D. all of the above are true
16. Statistics such as GDP, the unemployment rate, the rate of inflation and the trade balance
are:
Correct : A. macro, since they tell us something about the entire economy
17. What do you mean by a mixed economy?
Correct : B. public and private sectors
18. In Economics, a good is something which,
Correct : D. satisfies wants and needs
19. The basic factors of production are land, labour, capital and,
Correct : A. enterprise
20. Macroeconomics became popular after-------------
Correct : A. great depression of 1929- 33
21. The term ‘macro’ has been derived from--------------
Correct : A. greek word ‘makros’ which means large
22. In macroeconomics, we study about ------------------
Correct : D. all of the above.
23. Which of the following is/are the goals of macroeconomics-----------?
Correct : D. all the above
24. The average income of a country is called
Correct : A. per capita income
25. The value of NNP at production point is called
Correct : A. nnp at factor cost
26. The value of NNP at consumer point is called the
Correct : B. nnp at market price
27. When depreciation is deducted from GNP, the net value is
Correct : A. net national product (nnp)
28. What is the net value of GDP after deducting depreciation from GDP(Gross domestic product)?
Correct : B. net domestic product
29. Consider the following statements and identify the right ones.
i. National income is the monetary value of all final goods and services produced.
ii. Depreciation is deducted from gross value to get the net value
Correct : C. both
30. Which of the following is considered as financial year in India?
Correct : A. april 1 to march 31
31. Which is not added in the calculation of national income of India?
Correct : D. both [b] & [c]
32. Which sector contributes the most to India's economy in terms of GDP?
Correct : A. service sector
33. Which statement is true?
Correct : A. national expenditure = national income
34. There are methods of measuring national income:
Correct : D. 3
35. If we compare GDP and GNP, then:
Correct : B. gnp = gdp + net income from abroad (r-p) ……. gdp+(r-p)
36. Select the correct statement:
Correct : B. depreciation allowance is a part of gnp
37. Which is the largest figure:
Correct : B. gnp
38. Which is a flow concept:
Correct : C. my monthly income
39. To avoid double counting when GDP is estimated, economists:
Correct : B. calculate value added at each stage of production
40. Personal income includes:
Correct : A. direct taxes
41. Personal income includes:
Correct : A. transfer payments
42. If savings exceed investment then:
Correct : B. national income falls
43. This statement is true
Correct : A. ni = rent + interest + wages + profit
44. Which Ministry is responsible for calculating GDP in India?
Correct : C. ministry of central statistical and program implementation
45. Which state of India currently has the highest Per Capita Income?
Correct : A. goa
46. How much does the primary sector contribute to India's GDP?
Correct : B. 20%
47. Which sector contributes the most to India's economy?
Correct : A. service sector
48. If the contribution of the agricultural sector is decreasing in a country's economy, then what
conclusion can be drawn?
Correct : A. the country is growing in the direction of being a developed nation
49. Which is not added in the calculation of national income of India?
Correct : D. both b & c
50. Output means. ……………unless stated otherwise
Correct : A. gross output at mp (gdpmp)
51. Which of the following is not a component of domestic income?
Correct : C. net factor income from abroad
52. If factor cost is greater than marker price, it means that
Correct : A. indirect taxes < subsidies (subsidy> indirect taxes)
53. An Indian farmer produces wheat without incurring cost of inputs alll
sells for Rs. 1,000 to a miller who grinds wheat into flour and sells for Rs 1,200 to baker. The
baker sells bread to consumers for Rs. 1,600. Total added is Rs.
Correct : A. 1,600
54. Which of the following is not true about final goods ?
Correct : C. final goods are subject to further transformation in the process of production.
55. Following is an example of final good:
Correct : B. unsold stock of goods lying with the sellers
56. Which out of the following is not included in estimation of NI?
Correct : B. old-age pension
57. Which of the following is a synonym of “Undistributed Profits”?
Correct : D. all of these
58. Piyush’s mother is a teacher. She also teaches Piyush. How would you treat this white
calculating national income and domestic income ?
Correct : D. it will neither be included in the domestic income nor in the national income.
59. Goods which are not used in the production of other goods are called:
Correct : B. consumption goods
60. Depreciation is the:
Correct : D. all of these
61. Which of following is not included in national income ?
Correct : D. transfer income
62. Which of following is not an intermediate goods?
Correct : C. service of doctor
63. Which of following is not a final good?
Correct : A. machinery purchased by dealer
64. Which of following is not a part of national income?
Correct : A. depreciation
65. Product method of calculating national income is also known as:
Correct : B. value added method
66. Transfer payments refer to payments, which are made:
Correct : A. without any exchange of goods and services
67. National Income differs from Net National Product at market price by the amount of:
Correct : B. net indirect taxes (difference between indirect tax and subsidy)
68. Net national product at factor cost is also known as:
Correct : C. national income
69. In GNP calculation which of the following should be excluded?
Correct : D. government transfer payment
70. National Income differs from Net National Product at market price by the amount of:
Correct : B. net indirect taxes
71. Excess demand for money, according to Say’s law in the Economy:
Correct : D. there is no relationship between excess demand for money and say’s law
72. Which of the following is not an assumption of classical theory?
Correct : B. unemployment
73. In classical theory the equality between saving and investment is brought about by:
Correct : A. rate of interest
74. The normal condition of a capitalist economy in classical theory is:
Correct : B. full employment
75. In classical theory of employment, there is the possibility of:
Correct : A. voluntary unemployment
76. “Supply creates its own demand “is a law of:
Correct : D. market
77. According to classical economists, variations in savings are due to:
Correct : B. rate of interest
78. Supply creates its own demand is the Basis of:
Correct : A. classical economics
79. Which policy is effective in the Keynesian range?
Correct : B. fiscal policy
80. When output exceeds spending:
Correct : A. there is unsold output, and level of output will fall
81. Entrepreneurs will have no tendency to expand or contract output and employment when
Correct : C. ad=as
82. The slope of the consumption function is called
Correct : A. mpc
83. The concept of effective demand is associated with the name of
Correct : B. keynes
84. Psychological law of consumption states that the value of MPC is lies between zero and
Correct : A. 1
85. Net investment is also known as
Correct : D. capital formation
86. In the saving function S = -a + (b)Y, the term ‘b’ denotes
Correct : B. mpc
87. Who propounded Psychological law of consumption
Correct : C. keynes
88. When MPS = 0.2, MPC will be
Correct : A. 0.8
89. In the linear consumption function C = a + bY, coefficient ‘a’ denotes
Correct : C. autonomous consumption
90. In the equation C = 60 + 0.6 Y, MPC is
Correct : B. 0.6
91. Keynes assumed the presence of --------- economy for the fundamental law of
consumption
Correct : A. capitalistic
92. Demand-pull inflation may be caused by:
Correct : B. a reduction in interest rates
93. Inflation:
Correct : D. reduces the purchasing power of a rupee
94. An increase in injections into the economy may lead to:
Correct : A. an outward shift of aggregate demand and demand-pull inflation
95. According to the Phillips curve, unemployment will return to the natural rate when:
Correct : B. real wages are back at long-run equilibrium level
96. What is the cause of inflation?
Correct : C. if money supply increases and production falls.
97. What does the inflation imply?
Correct : D. rise in general price index.
98. How the inflation can be checked temporarily?
Correct : B. decrease in money supply
99. Which groups are not protected from inflation?
Correct : B. agricultural farmers
100. Which of the following cannot be included among the remedies of inflation?