SYBCOM || Macroeconomics MCQ questions paper solution:
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MCQ OF COMMERCE MID SEM Exam preparation
MACRO ECONOMIC THEORY (BEC1318)
1. Macroeconomics was named by
A. Adam Smith B. David Ricardo
C. Ragnar Frisch D. J.M. Keynes
2. The point of interaction of aggregate supply curve and aggregate demand curve is known as the point of ________
A. Aggregate demand B. Effective demand
C. Supply D. None of the above
3. Which of these will result into increase in the circular flow income?
A. Increase in savings of house-holds. B. Increase in taxes
C. Increase in exports D. Increase in imports
4. Which of these statements is correct?
A. The difference between GNPMP and
GNPFC is because of Net indirect taxes.
B. The difference between GNP and NNP is
because of NFIA.
C. The difference between Personal Income
and Personal Disposable income arise
because of Social Security contribution
D. The difference between GNP and GDP
arises due to depreciation on capital goods.
5. Which of these is postulate of classical economics?
A. Economy has a natural tendency towards
full employment
B. There is prefect price-wage of flexibility.
C. Money is Neutral D. All of the above
6. Which of the following strong assumption of Classical economics?
A. Say’s law of Market B. Principle of effective demand
C. Government interaction D. None of the above
7. The Principle of effective Demand was given by
A. J.B. Say B. J.M. Keynes
C. J.R. Hicks D. J.S. Mill
8. Aggregate Supply Price refers to proceeds _________ from the sale of output produced at a particular level of
employment.
A. Rejected B. Necessary
C. Expected D. Completed
9. In labour market equilibrium, when employers employ additional labourers, the marginal physical
product will.....
A. Decrease B. Increase
C. Constant D. None of the above
10. What are the real flows in the Circular Flow of Income?
A. Factor income B. Payment for goods and services
C. Government direct and indirect taxes D. Labour services to Business sector
11. Which of the following will be not treated in estimating national income?
A. Transfer payments B. Purchase of new car
C. Commission on resale of old house D. Wages to labours
12. GDPMP = _________ + Depreciation - Net Factor Income from Abroad
A. NDPMP B. NNPMP
C. GDPFC D. NDPFC
13. According to Classical economists, in the long-run , a market economy is always in equilibrium because of
A. Value of total production = Cost of
production
B. Cost of production = Factor income
C. Factor income = Total expenditure D. All of the above
14. Macroeconomics is also known as
A. Theory of Income and Employment B. Theory of Economic Growth
C. Theory of General Price and Inflation D. Theory of Distribution
15. Voluntary unemployment means
A. Potential workers are not willing to work at
prevailing wage rate
B. Rich peoples not willing to work
C. Workers go on strike for higher wages D. All of the above
16. According to classical economists, equilibrium can be derived by
A. Flexible wage rate B. Flexible prices of goods and services
C. Both A and B D. None of the above
17. Keynesian theory of income and employment, there is underemployment equilibrium in economy due to
A. Fixed wage rates in short-run B. Lack of effective demand
C. Fixed prices of goods and services D. Slight flexibility in prices
18. Aggregate demand price is
A. Total cost of production B. Total expected sales receipts
C. Total quantity production in economy D. Average price of all basket of goods and
services
19. According to Keynes:
A. Labour supply depends on real wage rate B. Labour supply depends on the money wage
rate
C. Labour supply depends on production
activity
D. None of the above
20. In order to maintain price stability, Classical economists advocate:
A. Stability of money demand B. Stability of money supply
C. Stability of rate of interest D. Stability of saving
(21) Net National Product does not include...
(A) Indirect business tax
(B) Depreciation charg
(C) Corporate income tax
(D) The rental value of house-owne
(22) A major part of a country's output is normally used for.
(A) Private consumption
(B) Public consumption
(C) Export
(D) Investment
(23) Expenditure of defense is an item of...
(A) Public Investment
(B) Private consumption
(C) Private investment
(D) Public consumption
(24) Net national product at factor cost is also known as:
(A) Net domestic product
(B) National income
(C) Gross national product
(D) A personal income
(25) Double counting means...
(A) Counting a product more than once
(B) Counting a product at the final stage of output process
(C) Counting both as product and as factor payment
(D) Counting both as "real goods" and as "money flow"
(26) In a simple economy, National income is:
(A) More than disposable income
(B) Sometimes less than disposable income
(C) Equal to disposable income
(D) Less than disposable income
(27) Monetary deficit is the...
(A) Government deficit on payments disburseme
(B) RBIs deficit due to outstanding du
(C) Net RBI credit to the Central Governme
(D) Difference between Government payment and receipts im monitoring te
(28) Stagflation is a period of.
(A) High inflati
(B) Low unemployme
(C) High unemployme
(D) Both (a) and (b) above
(29) Customs Duty is an instrument of:
(A) Monetary Policy
(B) Trade Policy
(C) Fiscal Policy
(D) Revenue Policy
(30) Increase in net RBI credit to the Central Government is reflected in _______ deficit.
(A) Budget
(B) Monetized
(C) Revenue
(D) Gross Primary
(31) Coulborn defines "inflation" as:
(A) Too much money chasing too few good
(B) Too much goods chasing too few money
(C) The issue of too much currency
(D) The production of too much goods
(32) The rise in prices and the phenomenon of inflation...
(A) Are not related to each other
(B) Moves in the opposite direction
(C) Are inter-related
(D) None of the above
(33) Which of the following is Not included in disposable income?
(A) Business Transfer Payments
(B) Corporate Dividends
(C) Social Security Benefits
(D) Personal Income Taxes
(34) Double counting means counting the same value:
(A) Twice
(B) Three times
(C) Four times
(D) More than one time
(35) Transfer Payments include:
(A) Old age pensions
(B) Consumer's debt interest
(C) Payments made by individuals to the state as a tax
(D) All of these
(36) The national income of India is estimated by the:
(A) NCAER
(B) Planning Commission
(C) Indian Statistical Institute
(D) Central Statistical Organization
(37) Which of the following act as a leakage from the circular flow of spending and injection into the circular spending stream?
(A) Consumption & Saving
(B) Saving & Investment
(C) Investment & Consumption
(D) Aggregate Demand & Aggregate Supply
(38) Which of the following is an example of a flow variable?
(A) Change in money supply
(B) Consumer price index
(C) Foreign exchange reserves
(D) Gross capital stock
(39) National income does not include:
(A) Interest on unproductive national debt
(B) Income from government expenditure
(C) The payments by the households to J firms for the purchase of goods and j services
(D) Undistributed profits
(40) Transfer payments refer to:
(A) payments, made without any quid pro quo
(B) transferring wealth outside the j country through fictitious payments
(C) payments to employees at the time of transfer
(D) money transferred by one sector to another
41. According to classical economist:
A. Stress on long run Equilibrium. B. The automatic adjustment works
C. Champions of laissez faire policy D. All of the above
42. The total demand for goods and services in an economy is known as
A. Aggregate demand B. National demand
C. Gross national product D. Economy wide demand
43. An increase in real wages will
A. Shift the demand for labour schedule to the
right
B. Shift the demand for labour schedule to the
left
C. Increase the quantity of labour demanded D. Decrease the quantity of labour demanded
44. The basic difference between Classical model and the Keynesian model lies in the assumption of
A. Rigid money wages B. Rigid money supply
C. Demand for money D. Labour supply
45. Withdrawals lead to _____________.
A. Expansion in the size of circular flows B. Reduction in the size of circular flows
C. Balance in the circular flows D. Circular flows remaining the same
46. Flow of factors of production from the household sector to the business sector is a ________.
A. Money Flow B. Real Flow
C. Income Flow D. Expenditure Flow
47. Which of the following cannot be considered as factor income?
A. Wages B. Rent
C. Interest D. Capital
48. Concept of Real wage and Money wage are important for studying
A. Classical Theory of Wage determination B. Money Illusion
C. Wage Rigidity D. All of the above
(49) Double counting leads to:
(A) Under estimation of national product
(B) Over estimation of nationalproduct
(C) Distortation of nationalproduct
(D) None of the above
(50) To remove inequalities, the Governmat uses...
(A) Progressive taxes
(B) Indirect taxes
(C) Regressive taxes
(D) Proportional taxes
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