McqMate
These multiple-choice questions (MCQs) are designed to enhance your knowledge and understanding in the following areas: Bachelor of Arts in Economics (BA Economics) .
| 101. |
Starting point of Keynesian economics is: |
| A. | effective demand |
| B. | individual demand |
| C. | aggregate demand |
| D. | market demand |
| Answer» A. effective demand | |
| 102. |
Keynesian three sector model consist of: |
| A. | business sector, service sector, externalsector |
| B. | households, business, government |
| C. | governmentsector, open sector,service sector |
| D. | governmentsector, private sector, open sector |
| Answer» B. households, business, government | |
| 103. |
A substantial increase in the rate of interest can cause: |
| A. | increase in savings |
| B. | reduce propensity to consume |
| C. | all the above |
| D. | none of the above |
| Answer» C. all the above | |
| 104. |
Functional relationship between saving and disposable income is: |
| A. | savingfunction |
| B. | income function |
| C. | consumption function |
| D. | investment function |
| Answer» A. savingfunction | |
| 105. |
As the value of MPC increases, the value ofmultiplier: |
| A. | decreases |
| B. | increases |
| C. | constant |
| D. | cannot |
| Answer» B. increases | |
| 106. |
Who among the following pioneered the first real estimate of national income? |
| A. | adam smith |
| B. | david ricardo |
| C. | william petty |
| D. | none of the above |
| Answer» C. william petty | |
| 107. |
Who argued that national income issimply equal to “net product of agriculture”? |
| A. | mercantilists |
| B. | physiocrats |
| C. | classical economists |
| D. | neo classical economists |
| Answer» B. physiocrats | |
| 108. |
Who argued that “Everything that is produced in the course of a year, every service rendered, every fresh utility brought about is a part of the national wealth.”? |
| A. | js mill |
| B. | stanley jevons |
| C. | alfred marshall |
| D. | robert malthus |
| Answer» C. alfred marshall | |
| 109. |
Who made the first major attempt to estimate national income in a somewhat comprehensive manner? |
| A. | robert fisher |
| B. | john maynard keynes |
| C. | simon kuznets |
| D. | arthur pigou |
| Answer» C. simon kuznets | |
| 110. |
Consumption of capital good in the process of production is called as |
| A. | capital consumption |
| B. | depreciation |
| C. | decay of capital |
| D. | none of the above |
| Answer» B. depreciation | |
| 111. |
Which one of the following is roughly equal to national income? |
| A. | gdp |
| B. | nnp |
| C. | gnp |
| D. | sdp |
| Answer» B. nnp | |
| 112. |
Which one of the following includes ‘income ofresidents’? |
| A. | gdp |
| B. | nnp |
| C. | sdp |
| D. | none of the above |
| Answer» B. nnp | |
| 113. |
Remittances made by NRIs to India in the context of national income accounting is called as |
| A. | remittance income |
| B. | nri income |
| C. | factor payments |
| D. | all of the above |
| Answer» C. factor payments | |
| 114. |
Who first introduced the concept of circular flow ofincome? |
| A. | william petty |
| B. | adam smith |
| C. | david ricardo |
| D. | fancois quesnay |
| Answer» D. fancois quesnay | |
| 115. |
Which one in the following is a stock variable? |
| A. | income |
| B. | investment |
| C. | capital |
| D. | fiscal deficit |
| Answer» C. capital | |
| 116. |
Which one in the following is a flow variable? |
| A. | debt |
| B. | wealth |
| C. | unemployment |
| D. | gdp |
| Answer» D. gdp | |
| 117. |
Why do not the sale or purchase of used goods are not included in the GDP? |
| A. | used goods have only limited life |
| B. | used goods are not fresh production |
| C. | used goods are included in the previous gdp calculations |
| D. | all the above |
| Answer» C. used goods are included in the previous gdp calculations | |
| 118. |
Inventories are unsold goods produced by a firm, then why do they are included in GDP? |
| A. | inventories represent value |
| B. | inventories add to the stock of the firm |
| C. | they are purchases by the firm itself |
| D. | all the above |
| Answer» C. they are purchases by the firm itself | |
| 119. |
The value of ‘intermediate goods’ are excluded from GDP calculation because: |
| A. | it will increase the gdp unduly |
| B. | it results in multiple counting of same value |
| C. | intermediate goods are not important |
| D. | all the above |
| Answer» B. it results in multiple counting of same value | |
| 120. |
Value added at each stage of production means: |
| A. | value of output minus value of input |
| B. | total value added by that stage |
| C. | total value produced at that stage |
| D. | all of the above |
| Answer» A. value of output minus value of input | |
| 121. |
Imputed value of good is added to the GDP because: |
| A. | they indeed represent value |
| B. | there is no market price for that |
| C. | they increase consumption |
| D. | none of the above |
| Answer» B. there is no market price for that | |
| 122. |
GDP Deflator is also called as: |
| A. | implicit cost deflator |
| B. | gdp at factor cost |
| C. | implicit wage deflator |
| D. | implicit price deflator |
| Answer» D. implicit price deflator | |
| 123. |
Personal Income includes: |
| A. | dividend distributed |
| B. | social insurance contributions |
| C. | corporate profit |
| D. | none of the above |
| Answer» A. dividend distributed | |
| 124. |
Disposable Income does not include: |
| A. | excise dutypaid |
| B. | income tax |
| C. | customs dutypaid |
| D. | none of theabove |
| Answer» B. income tax | |
| 125. |
Investment is reckoned by which method for computing GDP: |
| A. | income method |
| B. | productmethod |
| C. | expenditure method |
| D. | value added method |
| Answer» C. expenditure method | |
| 126. |
Adam Smith, the father of modern economic theory, defined economics as a subject, which is mainly concerned with the study of nature and causes of generation of |
| A. | wealth |
| B. | welfare |
| C. | hipness |
| D. | scarcity |
| Answer» A. wealth | |
| 127. |
introduced the concept of welfare in the study of economics: |
| A. | fischer |
| B. | alfred marshall |
| C. | j s mill |
| D. | adam smith |
| Answer» B. alfred marshall | |
| 128. |
Who defined economics as: a science which studies human behavior as a relationship between ends and scarce means which have alternative uses: |
| A. | j b say |
| B. | alfred marshall |
| C. | david ricardo |
| D. | robbins |
| Answer» D. robbins | |
| 129. |
The problem of scarcity and choice making can be depicted using the tool of curve. |
| A. | demand |
| B. | isoquant |
| C. | indifference |
| D. | production possibility |
| Answer» D. production possibility | |
| 130. |
Macroeconomicsis primarily concerned with aggregates. Which of the following is not a macroeconomic aggregate? |
| A. | decision making by a household |
| B. | the unemployment rate, and inflation levels |
| C. | national income |
| D. | the supply of money |
| Answer» A. decision making by a household | |
| 131. |
Scientific attempts to describe economic relationships are : |
| A. | factual and can never be wrong |
| B. | accurate ways to predict political viewpoints |
| C. | known as positive economics |
| D. | directed at the fairness of social programs |
| Answer» C. known as positive economics | |
| 132. |
The method consistsin deriving conclusionsfrom general truths, takesfew general principles and applies them draw conclusions. |
| A. | inductive |
| B. | deductive |
| C. | empirical |
| D. | scientific |
| Answer» B. deductive | |
| 133. |
is a term referring to an intellectual controversy over epistemology, research methodology between Carl Menger, and Gustav von Schmoller. |
| A. | methodenstreit |
| B. | laissez-faire |
| C. | cetris paribus |
| D. | quid proquo |
| Answer» A. methodenstreit | |
| 134. |
Inductive method which also called empirical method was adopted by the: |
| A. | marginalist school |
| B. | mercantilists |
| C. | physiocrats |
| D. | historical school of economists |
| Answer» D. historical school of economists | |
| 135. |
Decisions made in households, firms, and government are the focus of: |
| A. | positive economic |
| B. | microeconomics |
| C. | normative economics |
| D. | macroeconomics |
| Answer» C. normative economics | |
| 136. |
Knowledge used to combine resources productively is called: |
| A. | comparative advantage |
| B. | capitalism |
| C. | entrepreneurship |
| D. | technology |
| Answer» D. technology | |
| 137. |
Economic efficiency for the entire economy requires that : |
| A. | potential gains to anyone necessitate losses to another |
| B. | all goods be produced at their lowest possible opportunity costs |
| C. | maximum-valued output is obtained from given resource |
| D. | all of the above |
| Answer» D. all of the above | |
| 138. |
Theories are: |
| A. | much more complicated than common sense |
| B. | scientific only if based on normative value judgments |
| C. | proven if only a few unimportant exceptions exist |
| D. | developed when we collect data, try to explain how things work, and then |
| Answer» D. developed when we collect data, try to explain how things work, and then | |
| 139. |
Division of Labour is limited by the extent of: |
| A. | supply |
| B. | demand |
| C. | price |
| D. | market |
| Answer» D. market | |
| 140. |
Milton Friedman restated the : |
| A. | labour theory |
| B. | profit theory |
| C. | quantity theory of money |
| D. | wage theory |
| Answer» C. quantity theory of money | |
| 141. |
If the value of a variable varies as a consequence of the variation in the value of some other variable, it is called: |
| A. | exogenous variable |
| B. | endogenours v ariable |
| C. | stock |
| D. | flow |
| Answer» B. endogenours v ariable | |
| 142. |
Saving is a function of: |
| A. | export |
| B. | investment |
| C. | improvement in productivity |
| D. | income |
| Answer» D. income | |
| 143. |
In the classical theory the equlity between saving and investment is brought about by: |
| A. | income |
| B. | rate interest |
| C. | consumption |
| D. | none ofthese |
| Answer» B. rate interest | |
| 144. |
Economic Laws are: |
| A. | statement of tendencies |
| B. | exact and predictable |
| C. | definite |
| D. | none |
| Answer» A. statement of tendencies | |
| 145. |
Which of the following concepts are most closely associated with J.M. Keynes? |
| A. | control of the money supply |
| B. | marginal utility theory |
| C. | indifference curve analysis |
| D. | marginal efficiency of capital |
| Answer» D. marginal efficiency of capital | |
| 146. |
Which of the following is an example of economic overhead? |
| A. | schools |
| B. | roads and railwlays |
| C. | sanitary facilities |
| D. | hospitals |
| Answer» B. roads and railwlays | |
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