Question 1

Which one of the following is roughly equal to national income?

Accepted Answer

A) GDP 
B) NNP 
C) GNP 
D) SDP 
A) GDP 
B) NNP 
C) GNP 
D) SDP B

Question 2

The MEC increases when:

Accepted Answer

A) Capital stock increases 
B) Capital stock decreases 
C) Capital remains constant 
D) None of the above 
A) Capital stock increases 
B) Capital stock decreases 
C) Capital remains constant 
D) None of the above B

Question 3

Inventories are unsold goods produced by a firm, then why do they are included in GDP?

Accepted Answer

A) Inventories represent value 
B) Inventories add to the stock of the firm 
C) They are purchases by the firm itself 
D) All the above 
A) Inventories represent value 
B) Inventories add to the stock of the firm 
C) They are purchases by the firm itself 
D) All the above C

Question 4

Who first introduced the concept of circular flow of income?

Accepted Answer

A) William Petty 
B) Adam Smith 
C) David Ricardo 
D) Fancois Quesnay 
A) William Petty 
B) Adam Smith 
C) David Ricardo 
D) Fancois Quesnay

Question 5

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."?

Accepted Answer

A) JS Mill 
B) Stanley Jevons 
C) Alfred Marshall 
D) Robert Malthus 
A) JS Mill 
B) Stanley Jevons 
C) Alfred Marshall 
D) Robert Malthus

Question 6

Remittances made by NRIs to India in the context of national income accounting is called as

Accepted Answer

A) Remittance Income 
B) NRI Income 
C) Factor Payments 
D) All of the above 
A) Remittance Income 
B) NRI Income 
C) Factor Payments 
D) All of the above

Question 7

As the value of MPC increases, the value of multiplier:

Accepted Answer

A) Decreases 
B) Increases 
C) Constant 
D) Cannot say 
A) Decreases 
B) Increases 
C) Constant 
D) Cannot say

Question 8

Keynesian three sector model consist of:

Accepted Answer

A) Business sector, service sector, external sector 
B) Households, business, government 
C) Government sector, open sector, service sector 
D) Government sector, private sector, open sector 
A) Business sector, service sector, external sector 
B) Households, business, government 
C) Government sector, open sector, service sector 
D) Government sector, private sector, open sector

Question 9

Which one in the following is a stock variable?

Accepted Answer

A) Income 
B) Investment 
C) Capital 
D) Fiscal Deficit 
A) Income 
B) Investment 
C) Capital 
D) Fiscal Deficit

Question 10

Functional relationship between saving and disposable income is:

Accepted Answer

A) Saving function 
B) Income function 
C) Consumption function 
D) Investment function 
A) Saving function 
B) Income function 
C) Consumption function 
D) Investment function

Question 11

Keynes considered subjective and objective factors:

Accepted Answer

A) Important determinants of consumption 
B) Unimportant determinants of consumption 
C) Determinants of investment 
D) Determinants of business's willingness to pay 
A) Important determinants of consumption 
B) Unimportant determinants of consumption 
C) Determinants of investment 
D) Determinants of business's willingness to pay

Question 12

Who argued that national income is simply equal to "net product of agriculture"?

Accepted Answer

A) Mercantilists 
B) Physiocrats 
C) Classical Economists 
D) Neo Classical Economists 
A) Mercantilists 
B) Physiocrats 
C) Classical Economists 
D) Neo Classical Economists

Question 13

Who among the following pioneered the first real estimate of national income?

Accepted Answer

A) Adam Smith 
B) David Ricardo 
C) William Petty 
D) None of the above 
A) Adam Smith 
B) David Ricardo 
C) William Petty 
D) None of the above

Question 14

Who made the first major attempt to estimate national income in a somewhat comprehensive manner?

Accepted Answer

A) Robert Fisher 
B) John Maynard Keynes 
C) Simon Kuznets 
D) Arthur Pigou 
A) Robert Fisher 
B) John Maynard Keynes 
C) Simon Kuznets 
D) Arthur Pigou

Question 15

Why do not the sale or purchase of used goods are not included in the GDP?

Accepted Answer

A) Used goods have only limited life 
B) Used goods are not fresh production 
C) Used goods are included in the previous GDP calculations 
D) All the above 
A) Used goods have only limited life 
B) Used goods are not fresh production 
C) Used goods are included in the previous GDP calculations 
D) All the above

Question 16

Which one of the following includes 'income of residents'?

Accepted Answer

A) GDP 
B) NNP 
C) SDP 
D) None of the above 
A) GDP 
B) NNP 
C) SDP 
D) None of the above

Question 17

The value of 'intermediate goods' are excluded from GDP calculation because:

Accepted Answer

A) It will increase the GDP unduly 
B) It results in multiple counting of same value 
C) Intermediate goods are not important 
D) All the above 
A) It will increase the GDP unduly 
B) It results in multiple counting of same value 
C) Intermediate goods are not important 
D) All the above

Question 18

Starting point of Keynesian economics is:

Accepted Answer

A) Effective demand 
B) Individual demand 
C) Aggregate demand 
D) Market demand 
A) Effective demand 
B) Individual demand 
C) Aggregate demand 
D) Market demand

Question 19

Which one in the following is a flow variable?

Accepted Answer

A) Debt 
B) Wealth 
C) Unemployment 
D) GDP 
A) Debt 
B) Wealth 
C) Unemployment 
D) GDP

Question 20

Value added at each stage of production means:

Accepted Answer

A) Value of output minus value of input 
B) Total value added by that stage 
C) Total value produced at that stage 
D) All of the above 
A) Value of output minus value of input 
B) Total value added by that stage 
C) Total value produced at that stage 
D) All of the above

Which one of the following is roughly equal to national income?

The MEC increases when:

Inventories are unsold goods produced by a firm, then why do they are included in GDP?

Who first introduced the concept of circular flow of income?

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."?

Remittances made by NRIs to India in the context of national income accounting is called as

As the value of MPC increases, the value of multiplier:

Keynesian three sector model consist of:

Which one in the following is a stock variable?

Functional relationship between saving and disposable income is:

Keynes considered subjective and objective factors:

Who argued that national income is simply equal to "net product of agriculture"?

Who among the following pioneered the first real estimate of national income?

Who made the first major attempt to estimate national income in a somewhat comprehensive manner?

Why do not the sale or purchase of used goods are not included in the GDP?

Which one of the following includes 'income of residents'?

The value of 'intermediate goods' are excluded from GDP calculation because:

Starting point of Keynesian economics is:

Which one in the following is a flow variable?

Value added at each stage of production means:

Consumer Theory and Utility

Indifference Curve Analysis and Consumer Theory

Cost Theory and Production Possibility Curve Analysis

Classical Economic Theory

Macroeconomic Theory and Models

Macroeconomic Equilibrium and Concepts

Keynesian Economics and Related Concepts

Economics and Economic Theory

Economic Concepts and Theories

Macroeconomics and Economic Theories

Economics and Economic Methods

Economics and Social Science

Production and Costs

Demand Analysis and Utility Theory

Indifference Curves, Ordering, Wealth of Nations, and More

Economics Questions on Demand and Supply

Elasticity of Supply and Demand

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Exam 8: National Income and Keynesian Economics

Which one of the following is roughly equal to national income?

The MEC increases when:

Inventories are unsold goods produced by a firm, then why do they are included in GDP?

Who first introduced the concept of circular flow of income?

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."?

Remittances made by NRIs to India in the context of national income accounting is called as

As the value of MPC increases, the value of multiplier:

Keynesian three sector model consist of:

Which one in the following is a stock variable?

Functional relationship between saving and disposable income is:

Keynes considered subjective and objective factors:

Who argued that national income is simply equal to "net product of agriculture"?

Who among the following pioneered the first real estimate of national income?

Who made the first major attempt to estimate national income in a somewhat comprehensive manner?

Why do not the sale or purchase of used goods are not included in the GDP?

Which one of the following includes 'income of residents'?

The value of 'intermediate goods' are excluded from GDP calculation because:

Starting point of Keynesian economics is:

Which one in the following is a flow variable?

Value added at each stage of production means:

Consumer Theory and Utility

Indifference Curve Analysis and Consumer Theory

Cost Theory and Production Possibility Curve Analysis

Classical Economic Theory

Macroeconomic Theory and Models

Macroeconomic Equilibrium and Concepts

Keynesian Economics and Related Concepts

Economics and Economic Theory

Economic Concepts and Theories

Macroeconomics and Economic Theories

Economics and Economic Methods

Economics and Social Science

Production and Costs

Demand Analysis and Utility Theory

Indifference Curves, Ordering, Wealth of Nations, and More

Economics Questions on Demand and Supply

Elasticity of Supply and Demand

Filters