On This Page
This set of Macro Economics 1 Multiple Choice Questions & Answers (MCQs) focuses on Macro Economics 1 Set 5
Q1 | Starting point of Keynesian economics is:
- effective demand
- individual demand
- aggregate demand
- market demand
Q2 | Keynesian three sector model consist of:
- business sector, service sector, externalsector
- households, business, government
- governmentsector, open sector,service sector
- governmentsector, private sector, open sector
Q3 | A substantial increase in the rate of interest can cause:
- increase in savings
- reduce propensity to consume
- all the above
- none of the above
Q4 | Functional relationship between saving and disposable income is:
- savingfunction
- income function
- consumption function
- investment function
Q5 | As the value of MPC increases, the value ofmultiplier:
- decreases
- increases
- constant
- cannot
Q6 | Who among the following pioneered the first real estimate of national income?
- adam smith
- david ricardo
- william petty
- none of the above
Q7 | Who argued that national income issimply equal to “net product of agriculture”?
- mercantilists
- physiocrats
- classical economists
- neo classical economists
Q8 | Who argued that “Everything that is produced in the course of a year, every servicerendered, every fresh utility brought about is a part of the national wealth.”?
- js mill
- stanley jevons
- alfred marshall
- robert malthus
Q9 | Who made the first major attempt to estimate national income in a somewhatcomprehensive manner?
- robert fisher
- john maynard keynes
- simon kuznets
- arthur pigou
Q10 | Consumption of capital good in the process of production is called as
- capital consumption
- depreciation
- decay of capital
- none of the above
Q11 | Which one of the following is roughly equal to national income?
- gdp
- nnp
- gnp
- sdp
Q12 | Which one of the following includes ‘income ofresidents’?
- gdp
- nnp
- sdp
- none of the above
Q13 | Remittances made by NRIs to India in the context of national income accounting iscalled as
- remittance income
- nri income
- factor payments
- all of the above
Q14 | Who first introduced the concept of circular flow ofincome?
- william petty
- adam smith
- david ricardo
- fancois quesnay
Q15 | Which one in the following is a stock variable?
- income
- investment
- capital
- fiscal deficit
Q16 | Which one in the following is a flow variable?
- debt
- wealth
- unemployment
- gdp
Q17 | Why do not the sale or purchase of used goods are not included in the GDP?
- used goods have only limited life
- used goods are not fresh production
- used goods are included in the previous gdp calculations
- all the above
Q18 | Inventories are unsold goods produced by a firm, then why do they are included in GDP?
- inventories represent value
- inventories add to the stock of the firm
- they are purchases by the firm itself
- all the above
Q19 | The value of ‘intermediate goods’ are excluded from GDP calculation because:
- it will increase the gdp unduly
- it results in multiple counting of same value
- intermediate goods are not important
- all the above
Q20 | Value added at each stage of production means:
- value of output minus value of input
- total value added by that stage
- total value produced at that stage
- all of the above
Q21 | Imputed value of good is added to the GDP because:
- they indeed represent value
- there is no market price for that
- they increase consumption
- none of the above
Q22 | GDP Deflator is also called as:
- implicit cost deflator
- gdp at factor cost
- implicit wage deflator
- implicit price deflator
Q23 | Personal Income includes:
- dividend distributed
- social insurance contributions
- corporate profit
- none of the above
Q24 | Disposable Income does not include:
- excise dutypaid
- income tax
- customs dutypaid
- none of theabove
Q25 | Investment is reckoned by which method for computing GDP:
- income method
- productmethod
- expenditure method
- value added method