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) .
| 201. |
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 | |
| 202. |
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 | |
| 203. |
Personal Income includes: |
| A. | Dividend distributed |
| B. | Social insurance contributions |
| C. | Corporate profit |
| D. | None of the above |
| Answer» A. Dividend distributed | |
| 204. |
Disposable Income does not include: |
| A. | Excise duty paid |
| B. | Income tax |
| C. | Customs duty paid |
| D. | None of the above |
| Answer» B. Income tax | |
| 205. |
Investment is reckoned by which method for computing GDP: |
| A. | Income Method |
| B. | Product method |
| C. | Expenditure Method |
| D. | Value added Method |
| Answer» C. Expenditure Method | |
| 206. |
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 | |
| 207. |
_________ 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 | |
| 208. |
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 | |
| 209. |
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 | |
| 210. |
Macroeconomics is 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 | |
| 211. |
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 | |
| 212. |
The ________ method consists in deriving conclusions from general truths, takes few general principles and applies them draw conclusions. |
| A. | Inductive |
| B. | Deductive |
| C. | Empirical |
| D. | Scientific |
| Answer» B. Deductive | |
| 213. |
________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 | |
| 214. |
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 | |
| 215. |
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 | |
| 216. |
Knowledge used to combine resources productively is called: |
| A. | Comparative advantage |
| B. | Capitalism |
| C. | Entrepreneurship |
| D. | Technology |
| Answer» D. Technology | |
| 217. |
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 | |
| 218. |
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 | |
| 219. |
Division of Labour is limited by the extent of: |
| A. | Supply |
| B. | Demand |
| C. | Price |
| D. | Market |
| Answer» D. Market | |
| 220. |
Milton Friedman restated the : |
| A. | Labour Theory |
| B. | Profit Theory |
| C. | Quantity Theory of Money |
| D. | Wage theory |
| Answer» C. Quantity Theory of Money | |
| 221. |
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» A. Exogenous variable | |
| 222. |
Saving is a function of: |
| A. | Export |
| B. | Investment |
| C. | Improvement in productivity |
| D. | Income |
| Answer» D. Income | |
| 223. |
In the classical theory the equlity between saving and investment is brought about by: |
| A. | Income |
| B. | Rate Interest |
| C. | Consumption |
| D. | None of these |
| Answer» B. Rate Interest | |
| 224. |
Economic Laws are: |
| A. | Statement of tendencies |
| B. | Exact and predictable |
| C. | Definite |
| D. | None |
| Answer» A. Statement of tendencies | |
| 225. |
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 | |
| 226. |
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 | |
| 227. |
Three methods of computing the national income are: |
| A. | Savings, investment and income methods |
| B. | Outlay, depreciation and production methods, |
| C. | Production, outlay and income methods, |
| D. | Revenue, consumption and production methods |
| Answer» C. Production, outlay and income methods, | |
| 228. |
The difference between GNP at Factor Cost and NNP at Factor Cost is: |
| A. | Imports |
| B. | Depreciation |
| C. | Taxes on Agriculture |
| D. | Net income from abroad |
| Answer» D. Net income from abroad | |
| 229. |
An equilibrium which holds a particular position over-time is: |
| A. | General Equilibrium |
| B. | Unstable equilibrium |
| C. | Stable equilibrium |
| D. | Partial equilibrium |
| Answer» C. Stable equilibrium | |
| 230. |
National income is a: |
| A. | Cross section analysis |
| B. | Flow concept |
| C. | Stock concept |
| D. | None |
| Answer» B. Flow concept | |
| 231. |
The services of a house wife are: |
| A. | Not part of Production |
| B. | A part of production |
| C. | A part of consumption |
| D. | Not a part of consumption |
| Answer» A. Not part of Production | |
| 232. |
Inflation can not be caused by: |
| A. | Cost push factor |
| B. | Excessive money supply |
| C. | Excessive production |
| D. | Demand pull factors |
| Answer» C. Excessive production | |
| 233. |
By representing amounts of proceeds by all entrepreneurs along the Y axis and volumes of employment along the X-axis, we can draw--------curves. |
| A. | Employment |
| B. | Consumption and Savings |
| C. | Revenue and employment |
| D. | Aggregate supply and demand |
| Answer» A. Employment | |
| 234. |
“Effective demand is different from aggregate demand”. This statement is: |
| A. | True |
| B. | False |
| C. | Baseless |
| D. | None of these |
| Answer» A. True | |
| 235. |
If MPC = 4/5, then value of the multiplier is: |
| A. | 20 |
| B. | 5 |
| C. | 0.80 |
| D. | 1.25 |
| Answer» B. 5 | |
| 236. |
In the Cambridge equation of M =KPR, the value of “K” is: |
| A. | “V” in the Fisher’s Equation |
| B. | 1/V |
| C. | M/V |
| D. | None of these |
| Answer» B. 1/V | |
| 237. |
Who had a different macro theory than the rest? |
| A. | Adam Smith |
| B. | David Ricardo |
| C. | Malthus |
| D. | J.B.Say |
| Answer» C. Malthus | |
| 238. |
”Mr. Keynes and the Classics” is the title of the famous paper by : |
| A. | Hansen |
| B. | Hicks |
| C. | Harrod |
| D. | Haberler |
| Answer» B. Hicks | |
| 239. |
Which of the following is not a flow variable: |
| A. | Income |
| B. | Wealth |
| C. | Saving |
| D. | Investment |
| Answer» B. Wealth | |
| 240. |
The quantity theory of money is primarily a theory of demand for money is stated by: |
| A. | Marshall |
| B. | Fisher |
| C. | Keynes |
| D. | Friedman |
| Answer» D. Friedman | |
| 241. |
When MPC is 0.5, the value of multiplier is: |
| A. | 5 |
| B. | 0.5 |
| C. | 2 |
| D. | 4 |
| Answer» C. 2 | |
| 242. |
In Classical theory, the equality between saving and investment is brought about by: |
| A. | Income |
| B. | Rate of interest |
| C. | Consumption |
| D. | Multiplier. |
| Answer» B. Rate of interest | |
| 243. |
Which one of the following is not correct: |
| A. | MPC declines as income increases |
| B. | MPC is positive but less than one |
| C. | MPS is always positive |
| D. | MPS declines as income increases |
| Answer» C. MPS is always positive | |
| 244. |
Marginal propensity to consume means: |
| A. | Inclination to conspicuous consumption |
| B. | Low income group spending more |
| C. | Rate of income spend on consumption |
| D. | The rate of extra income that will be spent on consumption |
| Answer» D. The rate of extra income that will be spent on consumption | |
| 245. |
Human capital formation refers to: |
| A. | The process of increasing the number of people |
| B. | The process of physical growth of capital |
| C. | The process of increasing knowledge, skills and capacities of all people |
| D. | The process of providing more facilities to the people |
| Answer» C. The process of increasing knowledge, skills and capacities of all people | |
| 246. |
According to Keynesian analysis, consumption is a function of: |
| A. | Permanent income |
| B. | Current income |
| C. | Estimated lifetime income |
| D. | Previous income. |
| Answer» B. Current income | |
| 247. |
If in an economy, out of every additional Rs.100 of national income, Rs.20 is taxed, Rs.20 is saved, and Rs.10 is spent on imports, then the value of multiplier is: |
| A. | 2 |
| B. | 2.5 |
| C. | 3.3 |
| D. | 5 |
| Answer» A. 2 | |
| 248. |
Which of the following equation is wrong? |
| A. | National Income = Effective demand |
| B. | National Income = GNP |
| C. | National Income = C + I |
| D. | National Income = C + S |
| Answer» A. National Income = Effective demand | |
| 249. |
The essential condition to act as money is: |
| A. | It is homogeneous |
| B. | It is legal tender |
| C. | It is backed by gold |
| D. | It is generally acceptable |
| Answer» D. It is generally acceptable | |
| 250. |
Which of the following is not a component of Income method to GNP? |
| A. | Wages and salaries |
| B. | Interest |
| C. | Depreciation |
| D. | Net foreign investment |
| Answer» C. Depreciation | |
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