Basic concepts of Macro economics

Bachelor of Business Administration (BBA)

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This set of Business Economics Multiple Choice Questions & Answers (MCQs) focuses on Basic concepts of Macro economics

Q1 | Who is credited with bringing the term "the invisible hand" in economics?
  • adam smith
  • john maynard keynes
  • f. hayek
  • samuelson
Answer: adam smith
Q2 | Macroeconomics as a separate branch came to be studied after the contributions of whicheconomist?
  • adam smith
  • john maynard keynes
  • f. hayek
  • samuelson
Answer: john maynard keynes
Q3 | When did the Great Depression hit the United States?
  • 2007
  • 1929
  • 1936
  • 2001
Answer: 1929
Q4 | Macroeconomics is a study of economics that deals with which 4 major factors:
  • households, firms, government, and demand-supply
  • households, firms, government and external sector
  • firms, government, free-market, and regulations
  • none of the above
Answer: households, firms, government and external sector
Q5 | What are consumption goods?
  • goods used for consumption in the production process
  • goods such as tools, machinery, etc which are used to create final consumption goods
  • goods and services that are consumed fully when purchased by the consumers
  • none of the above
Answer: goods and services that are consumed fully when purchased by the consumers
Q6 | What are Capital goods?
  • goods used for consumption in the production process
  • goods such as tools, machinery, etc which are used to create final consumer goods
  • goods and services that are consumed fully when purchased by the consumers
  • none of the above
Answer: goods such as tools, machinery, etc which are used to create final consumer goods
Q7 | What does the term Gross investment mean while denoting a nation's economy?
  • gross investment= net investment + depreciation
  • gross investment= net investment - depreciation
  • gross investment= depreciation - net investment
  • none of the above
Answer: gross investment= net investment + depreciation
Q8 | What does the term free-market denote in terms of economy?
  • minimal government intervention in trade and minimum regulations
  • maximum government intervention in trade and maximum regulations
  • means of production owned by the state
  • none of the above
Answer: minimal government intervention in trade and minimum regulations
Q9 | ___________economics can study the problem of Inflation in the country.
  • micro
  • macro
  • static
  • dynamic
Answer: macro
Q10 | The credit of development of macroeconomic approach must go to ________.
  • dr. marshall
  • prof. pigou
  • lord keynes
  • mrs. joan robinson)
Answer: lord keynes
Q11 | Macroeconomics does not study _________.
  • whole economy
  • national income
  • aggregate supply
  • product pricing)
Answer: product pricing)
Q12 | _________ is the subject matter of Macroeconomics.
  • growth theory
  • factory pricing
  • market structure
  • individual incomes
Answer: growth theory
Q13 | Micro and Macro approaches are ________.
  • competitive
  • alternative
  • substitutes
  • complementary
Answer: complementary
Q14 | For economists, statements about the world are of two types:
  • assumptions and theories
  • positive statements and negative statements
  • positive statements and normative statements
  • specific statements and general statements
Answer: positive statements and normative statements
Q15 | In a market economy:
  • households decide which firms to work for and what to buy with their incomes
  • profit and self-interest guide the decisions of firms and households
  • firms decide whom to hire and what to produced.
  • all of the above are true
Answer: all of the above are true
Q16 | Statistics such as GDP, the unemployment rate, the rate of inflation and the trade balanceare:
  • macro, since they tell us something about the entire economy
  • neither macro nor micro, but properly in the realm of political science
  • both micro and macro
  • micro, since they affect individual households and firms
Answer: macro, since they tell us something about the entire economy
Q17 | What do you mean by a mixed economy?
  • modern and traditional industries
  • public and private sectors
  • foreign and domestic investments
  • commercial and subsistence farming
Answer: public and private sectors
Q18 | In Economics, a good is something which,
  • is a service
  • can be a service
  • appears appealing
  • satisfies wants and needs
Answer: satisfies wants and needs
Q19 | The basic factors of production are land, labour, capital and,
  • enterprise
  • investment
  • machinery
  • resources
Answer: enterprise
Q20 | Macroeconomics became popular after-------------
  • great depression of 1929- 33
  • 1972-73
  • 1996- 97
  • 2006- 07
Answer: great depression of 1929- 33
Q21 | The term ‘macro’ has been derived from--------------
  • greek word ‘makros’ which means large
  • english word ‘makros’ which means large
  • greek word ‘makros’ which means small
  • french word ‘makros’ which means large
Answer: greek word ‘makros’ which means large
Q22 | In macroeconomics, we study about ------------------
  • theory of national income & employment
  • theory of money supply & price level
  • theory of international trade & eco growth
  • all of the above.
Answer: all of the above.
Q23 | Which of the following is/are the goals of macroeconomics-----------?
  • to achieve higher level of gdp
  • to achieve higher level of employment
  • stability of prices
  • all the above
Answer: all the above
Q24 | The average income of a country is called
  • per capita income
  • disposable income
  • inflation rate
  • real national income
Answer: per capita income
Q25 | The value of NNP at production point is called
  • nnp at factor cost
  • nnp at market price
  • gnp at market price
  • gnp at factor cost
Answer: nnp at factor cost
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