Question 1

If MPC = 4/5, then value of the multiplier is:

Accepted Answer

A) 20 
B) 5 
C) 0.80 
D) 1.25 
A) 20 
B) 5 
C) 0.80 
D) 1.25 B

Question 2

If in an economy, out of every additional Rs.100 of national income, Rs.20 is taxed, Rs.20 is saved, and Rs.10 is spent on imports, then the value of multiplier is:

Accepted Answer

A) 2 
B) 2.5 
C) 3.3 
D) 5 
A) 2 
B) 2.5 
C) 3.3 
D) 5 A

Question 3

An equilibrium which holds a particular position over-time is:

Accepted Answer

A) General Equilibrium 
B) Unstable equilibrium 
C) Stable equilibrium 
D) Partial equilibrium 
A) General Equilibrium 
B) Unstable equilibrium 
C) Stable equilibrium 
D) Partial equilibrium C

Question 4

By representing amounts of proceeds by all entrepreneurs along the Y axis and volumes of employment along the X-axis, we can draw--------curves.

Accepted Answer

A) Employment 
B) Consumption and Savings 
C) Revenue and employment 
D) Aggregate supply and demand 
A) Employment 
B) Consumption and Savings 
C) Revenue and employment 
D) Aggregate supply and demand

Question 5

Which of the following is not a component of Income method to GNP?

Accepted Answer

A) Wages and salaries 
B) Interest 
C) Depreciation 
D) Net foreign investment 
A) Wages and salaries 
B) Interest 
C) Depreciation 
D) Net foreign investment

Question 6

Marginal propensity to consume means:

Accepted Answer

A) Inclination to conspicuous consumption 
B) Low income group spending more 
C) Rate of income spend on consumption 
D) The rate of extra income that will be spent on consumption 
A) Inclination to conspicuous consumption 
B) Low income group spending more 
C) Rate of income spend on consumption 
D) The rate of extra income that will be spent on consumption

Question 7

According to Keynesian analysis, consumption is a function of:

Accepted Answer

A) Permanent income 
B) Current income 
C) Estimated lifetime income 
D) Previous income. 
A) Permanent income 
B) Current income 
C) Estimated lifetime income 
D) Previous income.

Question 8

National income is a:

Accepted Answer

A) Cross section analysis 
B) Flow concept 
C) Stock concept 
D) None 
A) Cross section analysis 
B) Flow concept 
C) Stock concept 
D) None

Question 9

"Effective demand is different from aggregate demand". This statement is:

Accepted Answer

A) True 
B) False 
C) Baseless 
D) None of these 
A) True 
B) False 
C) Baseless 
D) None of these

Question 10

Who had a different macro theory than the rest?

Accepted Answer

A) Adam Smith 
B) David Ricardo 
C) Malthus 
D) J.B.Say 
A) Adam Smith 
B) David Ricardo 
C) Malthus 
D) J.B.Say

Question 11

The quantity theory of money is primarily a theory of demand for money is stated by:

Accepted Answer

A) Marshall 
B) Fisher 
C) Keynes 
D) Friedman 
A) Marshall 
B) Fisher 
C) Keynes 
D) Friedman

Question 12

The difference between GNP at Factor Cost and NNP at Factor Cost is:

Accepted Answer

A) Imports 
B) Depreciation 
C) Taxes on Agriculture 
D) Net income from abroad 
A) Imports 
B) Depreciation 
C) Taxes on Agriculture 
D) Net income from abroad

Question 13

Human capital formation refers to:

Accepted Answer

A) The process of increasing the number of people 
B) The process of physical growth of capital 
C) The process of increasing knowledge, skills and capacities of all people 
D) The process of providing more facilities to the people 
A) The process of increasing the number of people 
B) The process of physical growth of capital 
C) The process of increasing knowledge, skills and capacities of all people 
D) The process of providing more facilities to the people

Question 14

Inflation can not be caused by:

Accepted Answer

A) Cost push factor 
B) Excessive money supply 
C) Excessive production 
D) Demand pull factors 
A) Cost push factor 
B) Excessive money supply 
C) Excessive production 
D) Demand pull factors

Question 15

Three methods of computing the national income are:

Accepted Answer

A) Savings, investment and income methods 
B) Outlay, depreciation and production methods, 
C) Production, outlay and income methods, 
D) Revenue, consumption and production methods 
A) Savings, investment and income methods 
B) Outlay, depreciation and production methods, 
C) Production, outlay and income methods, 
D) Revenue, consumption and production methods

Question 16

Which of the following is an example of economic overhead?

Accepted Answer

A) Schools 
B) Roads and Railwlays 
C) Sanitary facilities 
D) Hospitals 
A) Schools 
B) Roads and Railwlays 
C) Sanitary facilities 
D) Hospitals

Question 17

Which of the following equation is wrong?

Accepted Answer

A) National Income = Effective demand 
B) National Income = GNP 
C) National Income = C + I 
D) National Income = C + S 
A) National Income = Effective demand 
B) National Income = GNP 
C) National Income = C + I 
D) National Income = C + S

Question 18

The services of a house wife are:

Accepted Answer

A) Not part of Production 
B) A part of production 
C) A part of consumption 
D) Not a part of consumption 
A) Not part of Production 
B) A part of production 
C) A part of consumption 
D) Not a part of consumption

Question 19

The essential condition to act as money is:

Accepted Answer

A) It is homogeneous 
B) It is legal tender 
C) It is backed by gold 
D) It is generally acceptable 
A) It is homogeneous 
B) It is legal tender 
C) It is backed by gold 
D) It is generally acceptable

Question 20

Which one of the following is not correct:

Accepted Answer

A) MPC declines as income increases 
B) MPC is positive but less than one 
C) MPS is always positive 
D) MPS declines as income increases 
A) MPC declines as income increases 
B) MPC is positive but less than one 
C) MPS is always positive 
D) MPS declines as income increases

If MPC = 4/5, then value of the multiplier is:

If in an economy, out of every additional Rs.100 of national income, Rs.20 is taxed, Rs.20 is saved, and Rs.10 is spent on imports, then the value of multiplier is:

An equilibrium which holds a particular position over-time is:

By representing amounts of proceeds by all entrepreneurs along the Y axis and volumes of employment along the X-axis, we can draw--------curves.

Which of the following is not a component of Income method to GNP?

Marginal propensity to consume means:

According to Keynesian analysis, consumption is a function of:

National income is a:

"Effective demand is different from aggregate demand". This statement is:

Who had a different macro theory than the rest?

The quantity theory of money is primarily a theory of demand for money is stated by:

The difference between GNP at Factor Cost and NNP at Factor Cost is:

Human capital formation refers to:

Inflation can not be caused by:

Three methods of computing the national income are:

Which of the following is an example of economic overhead?

Which of the following equation is wrong?

The services of a house wife are:

The essential condition to act as money is:

Which one of the following is not correct:

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

National Income and Keynesian Economics

Economics and Economic Theory

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 10: Economic Concepts and Theories

If MPC = 4/5, then value of the multiplier is:

If in an economy, out of every additional Rs.100 of national income, Rs.20 is taxed, Rs.20 is saved, and Rs.10 is spent on imports, then the value of multiplier is:

An equilibrium which holds a particular position over-time is:

By representing amounts of proceeds by all entrepreneurs along the Y axis and volumes of employment along the X-axis, we can draw--------curves.

Which of the following is not a component of Income method to GNP?

Marginal propensity to consume means:

According to Keynesian analysis, consumption is a function of:

National income is a:

"Effective demand is different from aggregate demand". This statement is:

Who had a different macro theory than the rest?

The quantity theory of money is primarily a theory of demand for money is stated by:

The difference between GNP at Factor Cost and NNP at Factor Cost is:

Human capital formation refers to:

Inflation can not be caused by:

Three methods of computing the national income are:

Which of the following is an example of economic overhead?

Which of the following equation is wrong?

The services of a house wife are:

The essential condition to act as money is:

Which one of the following is not correct:

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

National Income and Keynesian Economics

Economics and Economic Theory

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