McqMate
These multiple-choice questions (MCQs) are designed to enhance your knowledge and understanding in the following areas: Bachelor of Business Administration (BBA) .
Chapters
| 1. |
Who is credited with bringing the term "the invisible hand" in economics? |
| A. | adam smith |
| B. | john maynard keynes |
| C. | f. hayek |
| D. | samuelson |
| Answer» A. adam smith | |
| 2. |
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 | |
| 3. |
When did the Great Depression hit the United States? |
| A. | 2007 |
| B. | 1929 |
| C. | 1936 |
| D. | 2001 |
| Answer» B. 1929 | |
| 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. |
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 | |
| 8. |
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 | |
| 9. |
___________economics can study the problem of Inflation in the country. |
| A. | micro |
| B. | macro |
| C. | static |
| D. | dynamic |
| Answer» B. macro | |
| 10. |
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 | |
| 11. |
Macroeconomics does not study _________. |
| A. | whole economy |
| B. | national income |
| C. | aggregate supply |
| D. | product pricing) |
| Answer» D. product pricing) | |
| 12. |
_________ is the subject matter of Macroeconomics. |
| A. | growth theory |
| B. | factory pricing |
| C. | market structure |
| D. | individual incomes |
| Answer» A. growth theory | |
| 13. |
Micro and Macro approaches are ________. |
| A. | competitive |
| B. | alternative |
| C. | substitutes |
| D. | complementary |
| Answer» D. complementary | |
| 14. |
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 | |
| 15. |
In a market economy: |
| A. | households decide which firms to work for and what to buy with their incomes |
| B. | profit and self-interest guide the decisions of firms and households |
| C. | firms decide whom to hire and what to produced. |
| D. | all of the above are true |
| Answer» D. all of the above are true | |
| 16. |
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 | |
| 17. |
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 | |
| 18. |
In Economics, a good is something which, |
| A. | is a service |
| B. | can be a service |
| C. | appears appealing |
| D. | satisfies wants and needs |
| Answer» D. satisfies wants and needs | |
| 19. |
The basic factors of production are land, labour, capital and, |
| A. | enterprise |
| B. | investment |
| C. | machinery |
| D. | resources |
| Answer» A. enterprise | |
| 20. |
Macroeconomics became popular after------------- |
| A. | great depression of 1929- 33 |
| B. | 1972-73 |
| C. | 1996- 97 |
| D. | 2006- 07 |
| Answer» A. great depression of 1929- 33 | |
| 21. |
The term ‘macro’ has been derived from-------------- |
| A. | greek word ‘makros’ which means large |
| B. | english word ‘makros’ which means large |
| C. | greek word ‘makros’ which means small |
| D. | french word ‘makros’ which means large |
| Answer» A. greek word ‘makros’ which means large | |
| 22. |
In macroeconomics, we study about ------------------ |
| A. | theory of national income & employment |
| B. | theory of money supply & price level |
| C. | theory of international trade & eco growth |
| D. | all of the above. |
| Answer» D. all of the above. | |
| 23. |
Which of the following is/are the goals of macroeconomics-----------? |
| A. | to achieve higher level of gdp |
| B. | to achieve higher level of employment |
| C. | stability of prices |
| D. | all the above |
| Answer» D. all the above | |
| 24. |
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 | |
| 25. |
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 | |
| 26. |
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 | |
| 27. |
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) | |
| 28. |
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 | |
| 29. |
Consider the following statements and identify the right ones.
|
| A. | i only |
| B. | ii only |
| C. | both |
| D. | none |
| Answer» C. both | |
| 30. |
Which of the following is considered as financial year in India? |
| A. | april 1 to march 31 |
| B. | january 1 to december 31 |
| C. | march 1 to april 30 |
| D. | march 16 to march 15 |
| Answer» A. april 1 to march 31 | |
| 31. |
Which is not added in the calculation of national income of India? |
| A. | the value of goods and services |
| B. | the sold value of the old fridge |
| C. | services rendered by the housewives |
| D. | both [b] & [c] |
| Answer» D. both [b] & [c] | |
| 32. |
Which sector contributes the most to India's economy in terms of GDP? |
| A. | service sector |
| B. | manufacturing sector |
| C. | agricultural sector |
| D. | small scale industries |
| Answer» A. service sector | |
| 33. |
Which statement is true? |
| A. | national expenditure = national income |
| B. | national expenditure = national income + national savings |
| C. | national expenditure = national income + taxes |
| D. | national expenditure = national income – taxes |
| Answer» A. national expenditure = national income | |
| 34. |
There are methods of measuring national income: |
| A. | 5 |
| B. | 2 |
| C. | 1 |
| D. | 3 |
| Answer» D. 3 | |
| 35. |
If we compare GDP and GNP, then: |
| A. | gnp = gdp - net income from abroad |
| B. | gnp = gdp + net income from abroad (r-p) ……. gdp+(r-p) |
| C. | gnp = nnp - net income from abroad |
| D. | gnp = nnp + net income from abroad |
| Answer» B. gnp = gdp + net income from abroad (r-p) ……. gdp+(r-p) | |
| 36. |
Select the correct statement: |
| A. | transfer payment are included in national income |
| B. | depreciation allowance is a part of gnp |
| C. | taxes are not included in nnp |
| D. | gdp means gross direct production |
| Answer» B. depreciation allowance is a part of gnp | |
| 37. |
Which is the largest figure: |
| A. | nnp |
| B. | gnp |
| C. | pi (disposable personal income) |
| D. | pi (personal income) |
| Answer» B. gnp | |
| 38. |
Which is a flow concept: |
| A. | number of my shirts |
| B. | my total wealth |
| C. | my monthly income |
| D. | money supply |
| Answer» C. my monthly income | |
| 39. |
To avoid double counting when GDP is estimated, economists: |
| A. | use gdp deflator |
| B. | calculate value added at each stage of production |
| C. | use retail prices |
| D. | use price of only intermediate goods |
| Answer» B. calculate value added at each stage of production | |
| 40. |
Personal income includes: |
| A. | direct taxes |
| B. | indirect taxes |
| C. | depreciation |
| D. | none of these |
| Answer» A. direct taxes | |
| 41. |
Personal income includes: |
| A. | transfer payments |
| B. | indirect taxes |
| C. | depreciation |
| D. | all of the above |
| Answer» A. transfer payments | |
| 42. |
If savings exceed investment then: |
| A. | national income rises |
| B. | national income falls |
| C. | national income is not affected |
| D. | none of the above |
| Answer» B. national income falls | |
| 43. |
This statement is true |
| A. | ni = rent + interest + wages + profit |
| B. | ni = rent + interest + wages + taxes |
| C. | ni = govt. expenditure + interest + wages + profit |
| D. | ni = rent + interest + wages + pensions |
| Answer» A. ni = rent + interest + wages + profit | |
| 44. |
Which Ministry is responsible for calculating GDP in India? |
| A. | ministry of finance |
| B. | ministry of commerce and industry |
| C. | ministry of central statistical and program implementation |
| D. | ministry of consumer affairs |
| Answer» C. ministry of central statistical and program implementation | |
| 45. |
Which state of India currently has the highest Per Capita Income? |
| A. | goa |
| B. | delhi |
| C. | maharashtra |
| D. | punjab |
| Answer» A. goa | |
| 46. |
How much does the primary sector contribute to India's GDP? |
| A. | 26% |
| B. | 20% |
| C. | 53% |
| D. | 14% |
| Answer» B. 20% | |
| 47. |
Which sector contributes the most to India's economy? |
| A. | service sector |
| B. | manufacturing sector |
| C. | agricultural sector |
| D. | small scale industries |
| Answer» A. service sector | |
| 48. |
If the contribution of the agricultural sector is decreasing in a country's economy, then what conclusion can be drawn? |
| A. | the country is growing in the direction of being a developed nation |
| B. | the country is moving towards becoming developing nation |
| C. | the country is moving towards becoming less developed nation |
| D. | the economic growth rate of the country has stopped |
| Answer» 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? |
| A. | the value of goods and services |
| B. | the sold value of the old fridge |
| C. | services rendered by the housewives |
| D. | both b & c |
| Answer» D. both b & c | |
| 50. |
Output means. ……………unless stated otherwise |
| A. | gross output at mp (gdpmp) |
| B. | net output at mp |
| C. | gross output at fc |
| D. | none |
| Answer» A. gross output at mp (gdpmp) | |
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