McqMate
1. |
The headline inflation in India is measured in: |
A. | wpi |
B. | cpi |
C. | gdp deflator |
D. | all |
Answer» A. wpi |
2. |
The working group in India include in the age: |
A. | 14 to 55 |
B. | 15 to 59 |
C. | 20 and above |
D. | 25 and above |
Answer» B. 15 to 59 |
3. |
The main type of un employment referred by the Classicals: |
A. | voluntary |
B. | involuntary |
C. | both |
D. | none |
Answer» A. voluntary |
4. |
The main type of un employment referred by the Keynesian: |
A. | voluntary |
B. | involuntary |
C. | both |
D. | none |
Answer» B. involuntary |
5. |
The main type of un employment referred by the Post-Keynesians: |
A. | voluntary |
B. | involuntary |
C. | natural rate |
D. | none |
Answer» C. natural rate |
6. |
Main reason for frictional unemployment is : |
A. | lack of opportunities |
B. | low wage |
C. | high cost |
D. | market imperfection |
Answer» D. market imperfection |
7. |
Okun’s law related with : |
A. | unemployment and growth rate |
B. | inflation and growth rate |
C. | wage lose |
D. | none |
Answer» A. unemployment and growth rate |
8. |
The term Stagflation is coined by: |
A. | samuelson |
B. | iain macleod |
C. | keynes |
D. | none |
Answer» B. iain macleod |
9. |
Long run Phillips Curve is : |
A. | parallel |
B. | horizontal |
C. | vertical |
D. | kinked |
Answer» C. vertical |
10. |
In business cycle, depression is followed by: |
A. | . boom |
B. | recovery |
C. | recession |
D. | none of the above |
Answer» B. recovery |
11. |
A business cycle has: |
A. | three phases |
B. | four phases |
C. | five phases |
D. | six phases |
Answer» B. four phases |
12. |
Open market operations refer to the sale and purchase by the RBI of: |
A. | gold |
B. | foreign exchange |
C. | government securities |
D. | all the above |
Answer» C. government securities |
13. |
Which of the following is not an objective of monetary policy? |
A. | price stability |
B. | balance of payments equilibrium |
C. | economic growth |
D. | reduction in export |
Answer» D. reduction in export |
14. |
Which of the following is not a quantitative credit control measure? |
A. | bank rate |
B. | cash reserve ratio |
C. | regulation of margin requirement |
D. | open market operation |
Answer» C. regulation of margin requirement |
15. |
Which of the following is not an element of high Powered money? |
A. | currency |
B. | repos |
C. | required reserves |
D. | excess reserves |
Answer» B. repos |
16. |
The ratio of money supply to high powered money is: |
A. | slr |
B. | crr |
C. | money multiplier |
D. | bank rate |
Answer» C. money multiplier |
17. |
Fiscal Policy is a policy of the |
A. | central bank |
B. | government |
C. | finance commission |
D. | finance minister |
Answer» B. government |
18. |
Fiscal Policy includes: |
A. | expenditure policy |
B. | tax policy |
C. | both a and b |
D. | neither a nor b. |
Answer» C. both a and b |
19. |
The objective of Monetary Policy is : |
A. | to print notes of desired denominations |
B. | to control cost and supply of money |
C. | to provide loan to government |
D. | none of these |
Answer» A. to print notes of desired denominations |
20. |
Fiscal Policy refers to policy towards: |
A. | public revenue |
B. | public expenditure |
C. | public debt |
D. | all of the above |
Answer» D. all of the above |
21. |
In a closed economy which of the following is not a macroeconomic objective? |
A. | national income growth |
B. | price level stability |
C. | bop stability |
D. | employment |
Answer» C. bop stability |
22. |
A business cycle is composed of ------phases: |
A. | 2 phase |
B. | 3 phase |
C. | 4 phase |
D. | no phase |
Answer» C. 4 phase |
23. |
The percentage of deposits of commercial banks statutorily kept with the RBI is : |
A. | cash reserve ratio |
B. | statutory liquidity ratio |
C. | repo rate |
D. | none of these |
Answer» A. cash reserve ratio |
24. |
Peak is the --- turning point of the business cycle. |
A. | upper turning point |
B. | lower turning point |
C. | middle turning point |
D. | none of these |
Answer» A. upper turning point |
25. |
The trough of a business cycle occurs when hits its lowest point. |
A. | inflation |
B. | the money supply |
C. | aggregate economic activity |
D. | the unemployment rate |
Answer» C. aggregate economic activity |
26. |
The lowest point in the business cycle is referred to as the: |
A. | expansion. |
B. | boom. |
C. | trough. |
D. | peak. |
Answer» C. trough. |
27. |
When aggregate economic activity is increasing, the economy is said to be in: |
A. | an expansion. |
B. | a contraction. |
C. | a peak. |
D. | a turning point. |
Answer» A. an expansion. |
28. |
When aggregate economic activity is declining, the economy is said to be in: |
A. | a contraction. |
B. | an expansion. |
C. | a trough. |
D. | a turning point. |
Answer» A. a contraction. |
29. |
What are the two main components of business cycle theories? |
A. | a description of shocks and a model of how the economy responds to them |
B. | a model of how people decide to spend and a description of the government’s role in the economy |
C. | a model of how equilibrium is reached and a description of the government’s role in the economy |
D. | a description of shocks and a description of the government’s role in the economy |
Answer» A. a description of shocks and a model of how the economy responds to them |
30. |
Economists use the term shocks to mean: |
A. | unexpected government actions that affect the economy |
B. | typically unpredictable forces that have major impacts on the economy |
C. | sudden rises in oil prices |
D. | the business cycle. |
Answer» B. typically unpredictable forces that have major impacts on the economy |
31. |
Wars, new inventions, harvest failures, and changes in government policy are examples of: |
A. | the business cycle. |
B. | economic models. |
C. | shocks. |
D. | opportunity costs. |
Answer» C. shocks. |
32. |
Peaks and troughs of the business cycle are known collectively as: |
A. | volatility. |
B. | turning points. |
C. | equilibrium points. |
D. | real business cycle events. |
Answer» B. turning points. |
33. |
ISLM model was basically .............. sector model: |
A. | two |
B. | one |
C. | three |
D. | four |
Answer» A. two |
34. |
ISLM model was firstly developed by ………… |
A. | hansen |
B. | hicks |
C. | keynes |
D. | none |
Answer» B. hicks |
35. |
IS curve represents the equilibrium of ............. sector. |
A. | money |
B. | goods |
C. | government |
D. | all |
Answer» B. goods |
36. |
Original IS-LM model is a .......... model. |
A. | open |
B. | closed |
C. | both |
D. | none |
Answer» B. closed |
37. |
ISLM is used to determine: |
A. | income |
B. | interest |
C. | both |
D. | all |
Answer» C. both |
38. |
The goods market is otherwise referred to as: |
A. | money |
B. | financial |
C. | both |
D. | real sector |
Answer» D. real sector |
39. |
The relationship between income and interest in the IS curve is: |
A. | direct |
B. | indirect |
C. | no relation |
D. | none |
Answer» B. indirect |
40. |
The relationship between income and interest in the LM curve is: |
A. | direct |
B. | indirect |
C. | no relation |
D. | none |
Answer» A. direct |
41. |
The tax cut shift the IS curve to the: |
A. | right |
B. | left |
C. | no change |
D. | any of these. |
Answer» A. right |
42. |
Increase in Government expenditure shift IS curve to: |
A. | right |
B. | left |
C. | no change |
D. | any of these. |
Answer» A. right |
43. |
Decrease in money supply shift the LM curve to the: |
A. | right |
B. | left |
C. | no change |
D. | any of these. |
Answer» B. left |
44. |
One of the limitations of the ISLM model was: |
A. | static nature |
B. | open model |
C. | price is exogenous |
D. | all |
Answer» A. static nature |
45. |
Who develop the ISLM open economy model? |
A. | mundell |
B. | fleming |
C. | both |
D. | none |
Answer» C. both |
46. |
For an open economy model which curve is added IS-LM? |
A. | ms |
B. | demand |
C. | md |
D. | bp. |
Answer» D. bp. |
47. |
A temporary unemployment which exists during the period of the transfer of labor from one occupation to another is called |
A. | voluntary unemployment |
B. | involuntary unemployment |
C. | cyclical unemployment |
D. | frictional unemployment |
Answer» D. frictional unemployment |
48. |
When more workers are engaged in a work than actually required to work, it is called |
A. | voluntary unemployment |
B. | involuntary unemployment |
C. | disguised unemployment |
D. | frictional unemployment |
Answer» C. disguised unemployment |
49. |
The position of IS curve depends on--- |
A. | rate of interest, |
B. | rate of investment, |
C. | autonomous expenditure |
D. | none of the above |
Answer» C. autonomous expenditure |
50. |
The curve which relates the level of income with the rate of interest which is determined by money- market equilibrium corresponding to different levels of demand for money is known as |
A. | is curve |
B. | lm curve |
C. | income curve |
D. | none of the above. |
Answer» B. lm curve |
51. |
LM curve slopes— |
A. | downward to the right |
B. | upward to the right |
C. | vertical |
D. | horizontal. |
Answer» B. upward to the right |
52. |
The great depression was caused by what major event? |
A. | an increase in federal spending |
B. | the stock market crash |
C. | automobile workers going on strike |
D. | president hoover announcing a war |
Answer» B. the stock market crash |
53. |
Great Depression was between ……and ……. |
A. | 1929,1939 |
B. | 1930,1950 |
C. | 1928,1930 |
D. | 1930,1940 |
Answer» D. 1930,1940 |
54. |
The financial crisis of 2007-08 originated in the following country. |
A. | us |
B. | uk |
C. | russia |
D. | india |
Answer» A. us |
55. |
During the financial crisis of 2007-08, which financial instruments commonly came to be called “Toxic Assets”? |
A. | treasury bill |
B. | mortgaged backed securities |
C. | s&p stokes |
D. | government bonds |
Answer» B. mortgaged backed securities |
56. |
The period of economic downturn that ensued after the financial crisis of 2007-08 and affected many countries world-wide is called: |
A. | the great depression |
B. | the great recession |
C. | black friday |
D. | great collapse |
Answer» B. the great recession |
57. |
Fiscal policy in India is formulated by |
A. | reserve bank of india |
B. | planning commission |
C. | finance ministry |
D. | securities and exchange board of india |
Answer» C. finance ministry |
58. |
Economic Survey in India is published by the |
A. | reserve bank of india |
B. | ministry of finance, government of india |
C. | niti aayog |
D. | ministry of industries, government of india |
Answer» C. niti aayog |
59. |
Which one of the following is the largest item of expenditure of the Government of India on revenue account? |
A. | defense |
B. | pensions |
C. | subsidies |
D. | interest payments |
Answer» D. interest payments |
60. |
The lowest level of economic activity is called |
A. | contraction |
B. | trough |
C. | recovery |
D. | none of the above |
Answer» B. trough |
61. |
During depression _ industry suffer from excess production capacity. |
A. | capital goods |
B. | consumer durable goods |
C. | non-durable goods |
D. | both ‘a’ and ‘b’ |
Answer» A. capital goods |
62. |
The term business cycle refers to – |
A. | fluctuations in aggregate economic activity over time. |
B. | ups and down in the production of goods |
C. | increasing unemployment |
D. | declining savings |
Answer» A. fluctuations in aggregate economic activity over time. |
63. |
Expansion phase all but one of the following characteristics. |
A. | increase in national output |
B. | increase in consumer spending |
C. | excess production capacity of industries |
D. | expansion of bank credit |
Answer» C. excess production capacity of industries |
64. |
Which one of the following is not the characteristic of business cycle? |
A. | they are recurrent |
B. | they are not at regular intervals |
C. | they have uniform causes |
D. | all the above |
Answer» C. they have uniform causes |
65. |
The turning points of the business cycle are |
A. | expansion and peak |
B. | peak and contraction |
C. | contraction and trough |
D. | peak and trough |
Answer» D. peak and trough |
66. |
refers to the top or the highest point of business cycle. |
A. | expansion |
B. | peak |
C. | expansion and peak |
D. | none of the above |
Answer» B. peak |
67. |
Involuntary unemployment is almost zero in the phase of business cycle. |
A. | expansion |
B. | contraction |
C. | trough |
D. | depression |
Answer» A. expansion |
68. |
The economy is said to be overheated at the _ phase of business cycle. |
A. | expansion |
B. | peak |
C. | contraction |
D. | depression |
Answer» B. peak |
69. |
Cost of living increases when business cycle is |
A. | expanding |
B. | contracting |
C. | at peak |
D. | at lowest point |
Answer» C. at peak |
70. |
There is large scale of involuntary unemployment in the phase of business cycle. |
A. | expansion |
B. | peak |
C. | contraction |
D. | none of the above |
Answer» C. contraction |
71. |
Fall in the level of investments, fall in production, fall in employment, fall stock prices, etc. are found during phase of business cycle. |
A. | expansion |
B. | boom |
C. | peak |
D. | contraction |
Answer» D. contraction |
72. |
All but one are the endogenous factors of business cycle |
A. | war |
B. | changes in government spending |
C. | money supply |
D. | fluctuations in investments |
Answer» A. war |
73. |
When prices are falling continuously, the phenomenon is called: |
A. | inflation |
B. | stagflation |
C. | deflation |
D. | reflation |
Answer» C. deflation |
74. |
When too much money chases too few goods, the resulting Inflation is called: |
A. | deflation |
B. | demand-pull inflation |
C. | cost push inflation |
D. | stagflation |
Answer» B. demand-pull inflation |
75. |
Cause of Inflation in India is / are: |
A. | deficit financing |
B. | erratic agriculture growth |
C. | inadequate rise in industrial production |
D. | all of the above |
Answer» D. all of the above |
76. |
Stagflation means: |
A. | inflation with stagnation |
B. | recession with stagnation |
C. | inflation galloping like stage |
D. | inflation & increasing output |
Answer» A. inflation with stagnation |
77. |
Which is the most effective quantitative method to control inflation in the economy? |
A. | bank rate policy |
B. | selective credit control |
C. | cash reserve ratio |
D. | both (a) and (b) |
Answer» C. cash reserve ratio |
78. |
Which measures are followed by the government for handling inflation? |
A. | monetary measures |
B. | fiscal measures |
C. | controlling investments |
D. | all of these |
Answer» D. all of these |
79. |
Inflation is measured on the basis of: |
A. | wholesale price index |
B. | consumer price index |
C. | marshall’s index |
D. | all of these |
Answer» B. consumer price index |
80. |
When price increases due to increase in factor prices it is . |
A. | demand pull inflation |
B. | cost pull inflation |
C. | stagflation |
D. | none of the above. |
Answer» B. cost pull inflation |
81. |
According to the Phillips curve unemployment will return to the natural rate when ? |
A. | nominal wages are equal to expected wages |
B. | real wages are back at equilibrium level |
C. | nominal wages are growing faster than inflation |
D. | inflation is higher than the growth of nominal wages |
Answer» A. nominal wages are equal to expected wages |
82. |
Demand pull inflation may be caused by ? |
A. | an increase in costs |
B. | a reduction in interest rate |
C. | a reduction in government spending |
D. | an outward shift in aggregate supply |
Answer» B. a reduction in interest rate |
83. |
The economist who proposed that, “Inflation is always and everywhere a monetary phenomenon” was |
A. | john maynard keynes. |
B. | john r. hicks. |
C. | milton friedman. |
D. | franco modigliani. |
Answer» C. milton friedman. |
84. |
Inflation occurs whenever |
A. | the price level rises. |
B. | the money supply increases. |
C. | the price level rises continuously over a period of time. |
D. | the price level falls continuously over a period of time. |
Answer» C. the price level rises continuously over a period of time. |
85. |
An unrealistically low unemployment target will most likely result in |
A. | inflation. |
B. | an unemployment rate falling below the natural rate. |
C. | excessive monetary growth. |
D. | all of the above. |
Answer» D. all of the above. |
86. |
Governments may pursue inflationary monetary policies |
A. | to promote high employment. |
B. | to accommodate demands of workers for higher wages. |
C. | to finance a persistent budget deficit. |
D. | for all the above reasons. |
Answer» D. for all the above reasons. |
87. |
Which of the following is least likely to lead to inflationary monetary policy? |
A. | rising unemployment |
B. | expanding federal budget deficits |
C. | declining oil prices |
D. | conflict in the middle east |
Answer» C. declining oil prices |
88. |
Economists from which of the following schools of thought are most likely to favor activist government policies? |
A. | keynesian |
B. | monetarist |
C. | classical |
D. | all of the above |
Answer» A. keynesian |
89. |
According to the monetarists, inflation is caused by |
A. | supply shocks. |
B. | expansionary fiscal policies. |
C. | expansionary monetary policies. |
D. | rising prices. |
Answer» C. expansionary monetary policies. |
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