McqMate
These multiple-choice questions (MCQs) are designed to enhance your knowledge and understanding in the following areas: Bachelor of Commerce (B Com) .
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 | |
| 26. |
Consider the following statements and identify the right ones. i. National income is the monetary value of all final goods and services produced. ii. Depreciation is deducted from gross value to get the net value |
| A. | I only |
| B. | ii only |
| C. | both |
| D. | none |
| Answer» C. both | |
| 27. |
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 | |
| 28. |
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] | |
| 29. |
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 | |
| 30. |
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 (Central statistical organization) |
| D. | Ministry of consumer Affairs |
| Answer» C. Ministry of Central Statistical and Program Implementation (Central statistical organization) | |
| 31. |
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 | |
| 32. |
Which statement is true? |
| A. | National Income = National expenditure - indirect taxes |
| B. | NI = GNP - NNP |
| C. | NI = NNP - indirect taxes (because, from NNP if we minus the indirect taxes it will give us NNP@FC which is equal to NI) |
| D. | NI = PI |
| Answer» C. NI = NNP - indirect taxes (because, from NNP if we minus the indirect taxes it will give us NNP@FC which is equal to NI) | |
| 33. |
There are methods of measuring national income: |
| A. | 5 |
| B. | 2 |
| C. | 1 |
| D. | 3 |
| Answer» D. 3 | |
| 34. |
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) | |
| 35. |
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 | |
| 36. |
Which is the largest figure: |
| A. | NNP |
| B. | GNP |
| C. | PI (Disposable Personal Income) |
| D. | PI (personal income) |
| Answer» B. GNP | |
| 37. |
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 | |
| 38. |
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 | |
| 39. |
Personal income includes: |
| A. | Direct taxes |
| B. | Indirect taxes |
| C. | Depreciation |
| D. | None of these |
| Answer» A. Direct taxes | |
| 40. |
Personal income includes: |
| A. | Transfer payments |
| B. | Indirect taxes |
| C. | Depreciation |
| D. | All of the above |
| Answer» A. Transfer payments | |
| 41. |
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 | |
| 42. |
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 | |
| 43. |
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 | |
| 44. |
An Indian farmer produces wheat without incurring cost of inputs all sells for Rs. 1,000 to a miller who grinds wheat into flour and sells for Rs 1,200 to baker. The baker sells bread to consumers for Rs. 1,600. Total added is Rs. |
| A. | 1,600 |
| B. | 2,200 |
| C. | 1,000 |
| D. | 1,400 |
| Answer» A. 1,600 | |
| 45. |
How much does the primary sector contribute to India's GDP? |
| A. | 26% |
| B. | 20% |
| C. | 53% |
| D. | 14% |
| Answer» B. 20% | |
| 46. |
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 | |
| 47. |
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 | |
| 48. |
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 | |
| 49. |
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) | |
| 50. |
Which of the following is not a component of domestic income? |
| A. | Operating surplus |
| B. | Compensation of employees |
| C. | Net factor income from abroad |
| D. | Mixed income |
| Answer» C. Net factor income from abroad | |
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