Question 1

Who is credited with bringing the term &#34;the invisible hand&#34; in economics?&#10;A)adam smith&#10;B)john maynard keynes&#10;C)f. hayek&#10;D)samuelson

Accepted Answer

Adam Smith is credited with bringing the term "the invisible hand" into economics, particularly in his work "The Wealth of Nations," where he describes how self-interested individuals can promote societal benefits through their actions as if guided by an invisible hand.

Question 2

Macroeconomics as a separate branch came to be studied after the contributions of which economist?&#10;A)adam smith&#10;B)john maynard keynes&#10;C)f. hayek&#10;D)samuelson

Accepted Answer

John Maynard Keynes is widely recognized for his contributions that led to the development of macroeconomics as a separate branch of economics. His work, particularly "The General Theory of Employment, Interest, and Money" (1936), shifted the focus towards aggregate economic phenomena, such as total output, unemployment, and inflation, laying the foundation for macroeconomic analysis.

Question 3

When did the Great Depression hit the United States?&#10;A)2007&#10;B)1929&#10;C)1936&#10;D)2001

Accepted Answer

The Great Depression began in the United States in 1929, following the stock market crash on October 29, known as Black Tuesday.

Question 4

Macroeconomics is a study of economics that deals with which 4 major factors:&#10;A)households, firms, government, and demand-supply&#10;B)households, firms, government and external sector&#10;C)firms, government, free-market, and regulations&#10;D)none of the above

Accepted Answer

Macroeconomics focuses on the performance, structure, behavior, and decision-making of an economy as a whole, rather than individual markets. This includes the study of the aggregate behavior of households, firms, the government, and the external sector (international trade and finance).

Question 5

What are consumption goods?&#10;A)goods used for consumption in the production process&#10;B)goods such as tools, machinery, etc which are used to create final consumption goods&#10;C)goods and services that are consumed fully when purchased by the consumers&#10;D)none of the above

Accepted Answer

Consumption goods are those goods and services that are fully consumed when purchased by consumers, providing direct utility or satisfaction without further involvement in any production process.

Question 6

What are Capital goods?&#10;A)goods used for consumption in the production process&#10;B)goods such as tools, machinery, etc which are used to create final consumer goods&#10;C)goods and services that are consumed fully when purchased by the consumers&#10;D)none of the above

Accepted Answer

Capital goods are assets such as buildings, machinery, equipment, vehicles, and tools that an organization uses to produce goods or services. These are not finished goods but are used in the production process to manufacture consumer goods or provide services.

Question 7

What does the term Gross investment mean while denoting a nation's economy?&#10;A)gross investment= net investment + depreciation&#10;B)gross investment= net investment - depreciation&#10;C)gross investment= depreciation - net investment&#10;D)none of the above

Accepted Answer

Gross investment is calculated by adding net investment and depreciation. It represents the total amount invested in capital assets before accounting for depreciation.

Question 8

What does the term free-market denote in terms of economy?&#10;A)minimal government intervention in trade and minimum regulations&#10;B)maximum government intervention in trade and maximum regulations&#10;C)means of production owned by the state&#10;D)none of the above

Accepted Answer

A free-market economy is characterized by minimal government intervention and regulations, allowing businesses and individuals to operate with a high degree of freedom.

Question 9

-------economics can study the problem of Inflation in the country.&#10;A)micro&#10;B)macro&#10;C)static&#10;D)dynamic

Accepted Answer

Macro economics focuses on the performance, structure, behavior, and decision-making of an economy as a whole, which includes the study of inflation, national income, and the overall growth and development of a country.

Question 10

The credit of development of macroeconomic approach must go to -------.&#10;A)dr. marshall&#10;B)prof. pigou&#10;C)lord keynes&#10;D)mrs. joan robinson.

Accepted Answer

Lord Keynes is credited with the development of the macroeconomic approach, primarily through his influential work "The General Theory of Employment, Interest, and Money," which shifted the focus of economics from individual markets to the economy as a whole.

Question 11

Macroeconomics does not study -------.&#10;A)whole economy&#10;B)national income&#10;C)aggregate supply&#10;D)product pricing.

Accepted Answer

The answer of Macroeconomics does not study -------.&#10;A)whole economy&#10;B)national income&#10;C)aggregate...

Question 12

-------is the subject matter of Macroeconomics.&#10;A)growth theory&#10;B)factory pricing&#10;C)market structure&#10;D)individual incomes

Accepted Answer

The answer of -------is the subject matter of Macroeconomics.&#10;A)growth theory&#10;B)factory...

Question 13

Micro and Macro approaches are -------.&#10;A)competitive&#10;B)alternative&#10;C)substitutes&#10;D)complementary

Accepted Answer

The answer of Micro and Macro approaches are -------.&#10;A)competitive&#10;B)alternative&#10;C)substitutes&#10;D)complementary...

Question 14

What do you mean by a mixed economy?&#10;A)modern and traditional industries&#10;B)public and private sectors&#10;C)foreign and domestic investments&#10;D)commercial and subsistence farming

Accepted Answer

The answer of What do you mean by a mixed...

Question 15

In Economics, a good is something which,&#10;A)is a service&#10;B)can be a service&#10;C)appears appealing&#10;D)satisfies wants and needs

Accepted Answer

The answer of In Economics, a good is something which,&#10;A)is...

Question 16

The basic factors of production are land, labour, capital and,&#10;A)enterprise&#10;B)investment&#10;C)machinery&#10;D)resources

Accepted Answer

The answer of The basic factors of production are land,...

Question 17

Macroeconomics became popular after-------------&#10;A)great depression of 1929- 33&#10;B)1972-73&#10;C)1996- 97&#10;D)2006- 07

Accepted Answer

The answer of Macroeconomics became popular after-------------&#10;A)great depression of 1929-...

Question 18

The term 'macro' has been derived from--------------&#10;A)greek word 'makros' which means large&#10;B)english word 'makros' which means large&#10;C)greek word 'makros' which means small&#10;D)french word 'makros' which means large

Accepted Answer

The answer of The term 'macro' has been derived from--------------&#10;A)greek...

Question 19

In macroeconomics, we study about ------------------&#10;A)theory of national income & employment&#10;B)theory of money supply & price level&#10;C)theory of international trade & eco growth&#10;D)all of the above.

Accepted Answer

The answer of In macroeconomics, we study about ------------------&#10;A)theory of...

Question 20

Which of the following is/are the goals of macroeconomics-----------?&#10;A)to achieve higher level of gdp&#10;B)to achieve higher level of employment&#10;C)stability of prices&#10;D)all the above

Accepted Answer

The answer of Which of the following is/are the goals...

Question 21

The average income of a country is called&#10;A)per capita income&#10;B)disposable income&#10;C)inflation rate&#10;D)real national income

Accepted Answer

The answer of The average income of a country is...

Question 22

The value of NNP at production point is called&#10;A)nnp at factor cost&#10;B)nnp at market price&#10;C)gnp at market price&#10;D)gnp at factor cost

Accepted Answer

The answer of The value of NNP at production point...

Deck 1: Key Concepts in Macroeconomics and Economic History