Chapters
| 1. |
Macroeconomics as a separate branch came to be studied after the contributions of which economist? |
| A. | Adam Smith |
| B. | John Maynard Keynes |
| C. | F. Hayek |
| D. | Samuelson |
| Answer» B. John Maynard Keynes | |
| 2. |
When did the Great Depression hit the United States? |
| A. | 2007 |
| B. | 1929 |
| C. | 1936 |
| D. | 2001 |
| Answer» B. 1929 | |
| 3. |
Consider the following statements: 1. In a Capitalist economy there is private ownership of means of production 2. In a communist nation, the means of production are owned by the State 3. In a free-market economy there is minimum role of the Government Which of the above 3 statement is/are true? |
| A. | Only 1 and 3 |
| B. | Only 2 and 3 |
| C. | Only 3 |
| D. | All are true |
| Answer» D. All are true | |
| 4. |
Macroeconomics is a study of economics that deals with which 4 major factors: |
| A. | households, firms, government, and demand-supply |
| B. | households, firms, government and external sector |
| C. | firms, government, free-market, and regulations |
| D. | none of the above |
| Answer» B. households, firms, government and external sector | |
| 5. |
What are consumption goods? |
| A. | Goods used for consumption in the production process |
| B. | Goods such as tools, machinery, etc which are used to create final consumption goods |
| C. | Goods and services that are consumed fully when purchased by the consumers |
| D. | None of the above |
| Answer» C. Goods and services that are consumed fully when purchased by the consumers | |
| 6. |
What are Capital goods? |
| A. | Goods used for consumption in the production process |
| B. | Goods such as tools, machinery, etc which are used to create final consumer goods |
| C. | Goods and services that are consumed fully when purchased by the consumers |
| D. | None of the above |
| Answer» B. Goods such as tools, machinery, etc which are used to create final consumer goods | |
| 7. |
Intermediate goods are not included to calculate the final output because: |
| A. | they do not have value |
| B. | they have unknown value |
| C. | their value is included in final goods so they are not added to avoid the problem of double counting |
| D. | none of the above |
| Answer» C. their value is included in final goods so they are not added to avoid the problem of double counting | |
| 8. |
What does the term Gross investment mean while denoting a nation's economy? |
| A. | Gross investment= Net investment + Depreciation |
| B. | Gross investment= Net investment - Depreciation |
| C. | Gross investment= Depreciation - Net investment |
| D. | None of the above |
| Answer» A. Gross investment= Net investment + Depreciation | |
| 9. |
What does the term free-market denote in terms of economy? |
| A. | Minimal government intervention in trade and minimum regulations |
| B. | Maximum government intervention in trade and maximum regulations |
| C. | Means of production owned by the state |
| D. | None of the above |
| Answer» A. Minimal government intervention in trade and minimum regulations | |
| 10. |
___________economics can study the problem of Inflation in the country. |
| A. | Micro |
| B. | Macro |
| C. | Static |
| D. | Dynamic |
| Answer» B. Macro | |
| 11. |
The credit of development of macroeconomic approach must go to ________. |
| A. | Dr. Marshall |
| B. | Prof. Pigou |
| C. | Lord Keynes |
| D. | Mrs. Joan Robinson) |
| Answer» C. Lord Keynes | |
| 12. |
Macroeconomics does not study _________. |
| A. | whole economy |
| B. | national income |
| C. | aggregate supply |
| D. | product pricing) |
| Answer» D. product pricing) | |
| 13. |
_________ is the subject matter of Macroeconomics. |
| A. | Growth theory |
| B. | Factory Pricing |
| C. | Market Structure |
| D. | Individual Incomes |
| Answer» A. Growth theory | |
| 14. |
Micro and Macro approaches are ________. |
| A. | Competitive |
| B. | Alternative |
| C. | Substitutes |
| D. | Complementary |
| Answer» D. Complementary | |
| 15. |
For economists, statements about the world are of two types: |
| A. | Assumptions and theories |
| B. | Positive statements and negative statements |
| C. | Positive statements and normative statements |
| D. | Specific statements and general statements |
| Answer» C. Positive statements and normative statements | |
| 16. |
The opportunity cost of going to university is: |
| A. | The total spent on food, clothing, books, transportation, tuition, lodging and other expenses |
| B. | Zero for students who are fortunate enough to have all of their university expenses paid by someone else |
| C. | Zero, since a university education will allow a student to earn a higher income after graduation |
| D. | The value of the best opportunity a student gives up to attend university |
| Answer» D. The value of the best opportunity a student gives up to attend university | |
| 17. |
Statistics such as GDP, the unemployment rate, the rate of inflation and the trade balance are: |
| A. | Macro, since they tell us something about the entire economy |
| B. | Neither macro nor micro, but properly in the realm of political science |
| C. | Both micro and macro |
| D. | Micro, since they affect individual households and firms |
| Answer» A. Macro, since they tell us something about the entire economy | |
| 18. |
What do you mean by a mixed economy? |
| A. | Modern and traditional industries |
| B. | Public and private sectors |
| C. | Foreign and domestic investments |
| D. | Commercial and subsistence farming |
| Answer» B. Public and private sectors | |
| 19. |
“Capitalism” refers to? |
| A. | The use of market |
| B. | Government ownership of capital |
| C. | Private ownership of capital goods |
| D. | Private ownership of homes & cars |
| Answer» C. Private ownership of capital goods | |
| 20. |
The average income of a country is called |
| A. | Per capita income |
| B. | Disposable income |
| C. | Inflation rate |
| D. | Real national income |
| Answer» A. Per capita income | |
| 21. |
The value of NNP at production point is called |
| A. | NNP at factor cost |
| B. | NNP at market price |
| C. | GNP at market price |
| D. | GNP at factor cost |
| Answer» A. NNP at factor cost | |
| 22. |
The value of NNP at consumer point is called the |
| A. | NNP at factor cost |
| B. | NNP at market price |
| C. | GNP at market price |
| D. | GNP at factor cost |
| Answer» B. NNP at market price | |
| 23. |
When depreciation is deducted from GNP, the net value is |
| A. | Net national product (NNP) |
| B. | Net domestic product |
| C. | Gross national product |
| D. | Disposable income |
| Answer» A. Net national product (NNP) | |
| 24. |
Consider the following statements and identify the right ones. i. While calculating GNP, income generated by foreigners in a country is taken into consideration ii. While calculating GNP, income generated by nationals of a country outside the country is taken into account |
| A. | I only |
| B. | ii only |
| C. | both |
| D. | none |
| Answer» B. ii only | |
| 25. |
What is the net value of GDP after deducting depreciation from GDP(Gross domestic product)? |
| A. | Net national product |
| B. | Net domestic product |
| C. | Gross national product |
| D. | Disposable income |
| Answer» B. Net domestic product | |
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