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) .
| 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 | |
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