Deck 5: GDP, National Income, and Classical Economics

Question 1

Pick the odd one out:

A)real national income
B)ni at constant price
C)ni at current prices
D)ni at base year price

Answer 1

ni at current prices

Question 2

GDP deflator is given by:

A)nominal ni/real ni
B)nominal dgp/real gdp
C)nominal gdp/ nominal gnp
D)real gdp/real gnp

Answer 2

nominal dgp/real gdp

Question 3

Value of output minus intermediate consumption is:

A)depreciation
B)value added
C)net value added
D)net exports

Answer 3

value added

Question 4

National income is a --------variable.

A)flow
B)stock
C)static
D)dynamic

Question 5

In India, National income is estimated at:

A)current prices
B)constant prices
C)both current and constant prices
D)none of these

Question 6

Which of the following is true:

A)gdp is a geographical concept
B)gdp is not a geographical concept
C)gdp and gnp are same
D)none of them

Question 7

GNP measured in terms of current market prices is called:

A)nominal gnp
B)real gnp
C)both
D)none

Question 8

In India, the current base year is:

A)1980-81
B)1993-94
C)1999-2000
D)2004-05

Question 9

Which of the following doest not include in the group?

A)gdp
B)gnp
C)gva
D)ndp

Question 10

The term "Classical Economics" was first used by:

A)j.m. keynes
B)adam smith
C)karl marx
D)david ricardo

Question 11

Who is the leader of the Classical school?

A)thomas robert malthus
B)j.s. mill
C)david ricardo
D)adam smith.

Question 12

The core of classical economists is:

A)effective demand
B)employment
C)say's law of market
D)socialism

Question 13

'Law of Market' is attributed to:

A)j.s. mill
B)j.b. say
C)alfred marshall
D)a.c. pigou

Question 14

The Classicals adopted ---------policy:

A)governmental policy
B)laissez-faire
C)policy of restriction
D)none of these

Question 15

According to Classicals, full employment is a:

A)rare phenomenon
B)normal phenomenon
C)abnormal phenomenon
D)none of these

Question 16

According to the Classical economists, general over production is:

A)possible
B)impossible
C)both
D)none

Question 17

According to the Classical economists, savings and investments are:

A)always unequal
B)always equal
C)never equal
D)sometimes equal

Question 18

Classical aggregate supply curve is:

A)perfectly elastic
B)perfectly inelastic
C)more elastic
D)unitary elastic

Question 19

Pick the odd one from the following:

A)law of market
B)j.b. say
C)full employment
D)j.m. keynes

Question 20

According to the Classicals, investment is a function of:

A)saving
B)income
C)employment
D)rate of interest

Question 21

"Supply creates its own demand" is called:

A)law of supply
B)law of market
C)law of demand
D)law of elasticity

Question 22

Under the classical system, the equilibrium will be at:

A)under employment
B)full employment
C)voluntary employment
D)disguised unemployment

Question 23

When savings exceeds the demand for savings, the rate of interest will:

A)rise
B)fall
C)remain constant
D)none of these

Question 24

Rate of interest will increase when the demand for saving is:

A)less than its supply
B)equal to its supply
C)more than its supply
D)less than or equal to its supply