Bcom sem3|| IMP MCQ of macroeconomics

 

MACRO ECONOMICS THEORY (MET) MCQS

S.Y B.COM

SEMESTER - III

ACRO ECONOMICS THEORY

(MET)

UNIT = 3 & 4  MCQS  

(1) Which of the following is not a cause of inflation?

a) Slow growth in agricultural output

b) Slow growth industrial output

c) Slow growth in population

d) Rapid growth in costly imports

(2) Who gains in inflation?

a) Saver s

b) Creditor

c) Debtor

d) Pension holder

(3) In an inflationary situation, which of the following measures can the government take to reduce the inflationary gap?

a) Impose higher taxes

b) Reduce government expenditure

c) Increase government expenditure

d) Both a and b above

(4) How does inflation act as a blessing for people who invest by taking loans?

a) Reduction in value of loan repayment amount

b) Increase in value of loan repayment amount

c) Purchasing power increases

d) Rise in interest rates

(5) Which of the following is not a factor for demand pull inflation?

a) Increase in the price of raw materials

b) Increase in money supply

c) Budget deficit

d) Trade surplus

(6) Under which type of inflation does unemployment remain at the minimum in the economy?

a) Cost push inflation

b) Demand pull inflation

c) Demand push inflation

d) Both b and c

(7) Which type of inflation increases the level of unemployment to the maximum in the economy?

a) Demand pull inflation

b) Cost push inflation

c) Both a and b

d) Demand push inflation

(8) Which of the following variable(s) will come under stock variable(s)?

a) Consumer price index

b) Gross domestic product

c) Money supply.

d) Both (a) and (c) above

(9) The relationship between aggregate consumption expenditure and aggregate income of household sector is known as _______ Function.

a) Saving

b) Consumption

c) Expenditure

d) Income

(10) Which of the following variable(s) will come under flow variable(s)?

a) Unemployment

b) Foreign exchange reserves

c) consumption

d) Money supply

(11) The budget multiplier shows the effect of ________ on income.

a) Exports

b) Tax

c) Investment

d) Imports

(12) The permanent income consumption theory Was given by:

a) J.S.Duesenberry

b) J.M.Keynes

c) S.Fischer

d) M Friedman

(13) According to Keynes one of the variables determining the rate of interest is:

a) Supply of money 

b) Stock of money

c) Investment

d) Savings

(14) Real wage means money wage divided by _______

a) Salary

b) Cost 

c) MPL 

d) Price

(15) Which of the following is a part of GDP?

a) Rs. 100 earned by selling shares 

b) Rs.100 received by a girl as her pocket money

c) Rs.100 earned by selling good x

d) Rs.100 earned from Gambling

(16) Which of the following is not correct?

a) Personal income - Personal Tax = Disposable income

b) GNP = NNP + Depreciation

c) Disposable income - Consumption = Savings

d) Transfer payment is a part of National income

(17) Taxes can be considered as _______.

a) Rewards

b) Leakages

c) Injection

d) Income

(18) The full equilibrium condition can be stated as _________.

a) L (Y) + I (i) = s

b) C (Y) + l (i) = Md

c) C (Y) + I (i) = K (Y) + (i)

d) Ms = Y

(19) The sum of sales proceeds expected from sales is called ______

a) ADP 

b) ASP 

c) APS 

d) APC

(20) Of the following, which is not an objective of Macro Economics.....

a) Economic growth

b) Employment generation

c) Social welfare

d) Price stability

(21) In the national income accounts, net exports equal:

a) Exported goods less imported services

b) Exported goods & services minus imported services

c) Exported goods & services minus imported goods

d) Exported goods minus imported goods & services

(22) An open economy is one where there is:

a) No foreign transactions

b) No government sector

c) Foreign transaction

d) No Business Sector

(23) According to liquidity preference theory, the increase in money supply _______ the rate of interest.

a) Increases

b) Decreases

c) Do not change

d) Either increases or decreases

(24) In the Keynesian model when income increases by Rs.1000, than consumption expenditure wil.....

a) Increases by Rs.1000

b) Increases by more than Rs.1000

c) Decreases by Rs.1000

d) Increases by less than Rs.1000

(25) The L M curve in the usual case _______

a) Slopes down to the right

b) is horizontal

c) is vertical

d) Slopes up to the right

(26) If S = -100 + 0.2Y and Y = Rs.1000 then the APS is about ________

a) 0.10

b) 0.20

c) 0.15

d) 0.25

(27) The scope of Macro Economics does not involve one of the following:

a) The theory of price level

b) The theory of price determination

c) The theory of employment

d) The problem of inflation

(28) National income usually means:

a) GDP at factor cost

b) GNP at factor cost

c) NNP at factor cost 

d) NDP at factor cost

(29) Which of the following is not an example of transfer payment:

a) Unemployment allowance

b) Social security payment

c) House property rent

d) Pension payment

(30) Recession are periods where real GDP;

a) Increases Slowly 

b) Increases rapidly

c) Decreases mildly 

d) Decreases severely

(31) The statistics used by economist to measure the value of economic output is:

a) The CPI

b) BOP

c) GDP

d) GDP deflator

(32) The total income of every one in the economy is exactly equal to the total

a) Expenditures of economy's output of goods & services

b) Consumption expenditure of everyone

c) Government expenditure

d) Investment expenditure

(33) The net income earned within a domestic region of a country would be equal to:

a) NDP at market price

b) NDP at factor cost

c) NNP at factor cost

d) NNP at market price

(34) The concept of value added is used to calculate:

a) GDP at market price

b) Taxes and subsidies

c) Net factor income from abroad

d) GDP at factor cost

(35) ______ is not an instrument of monetary policy.

a) Bank rate Policy

b) Cash Reserve Ratio

c) Credit policy

d) Taxes

(36) Gross investment includes net investment & ______

a) Depreciation

b) Savings

c) Taxes

d) Subsidies

(37) Life cycle theory was developed by 

a) Keynes

b) Friedman

c) Marshall

d) Andu Mudigliani

(38) Deflation is .......

a) a situation of falling prices

b) a situation of rising prices

c) a situation of constant prices

d) None of these 

(39) Stagflation is a period of ....

a) High inflation

b) High unemployment

c) Low Unemployment

d) Both a and b above

(40) Customs duty is an instrument of:

a) Fiscal policy

b) Trade policy

c) Revenue policy

d) Monetary policy

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SYBCOM ||Macroeconomics MCQ practical sums solutions

 SYBCOM || Macroeconomics MCQ practical sums solutions:

Video:-

1. From given information (Rs. in Crore) NDPMP = 7342; NFIA = 2347; Subsidies = 2732; Indirect tax = 2000; Capital

wear and tear = 7400. Calculate NNPMP

A. 4995 B. 4732

C. 10074 D. 9689

2. From given information (Rs. in Crore) NDPMP = 7342; NFIA = 2347; Subsidies = 2732; Indirect tax = 2000; Capital

wear and tear = 7400. Calculate GNPMP

A. 6342 B. 17089

C. 10074 D. 9689

3. If nominal income increases by 50 % & prices increase by 30%, the real income increases by...

(A) 10% 

(B) 20%

(C) 30%

(D) 40%

SYBCOM || Macroeconomics MCQ questions paper solution

 SYBCOM || Macroeconomics MCQ questions paper solution:

Video:-

https://youtu.be/UBgx3GQzmfg

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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