Question 1

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 credited with the foundation of macroeconomics as a separate branch through his work "The General Theory of Employment, Interest, and Money" published in 1936, which addressed issues like total national output and the levels of unemployment and inflation.

Question 2

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 3

Consider the following statements:&#10;1) In a Capitalist economy there is private ownership of means of production&#10;2) In a communist nation, the means of production are owned by the State&#10;3) In a free-market economy there is minimum role of the Government Which of the above 3 statement is/are true?&#10;A)Only 1 and 3&#10;B)Only 2 and 3&#10;C)Only 3&#10;D)All are true

Accepted Answer

All three statements are true. In a capitalist economy, the means of production are indeed primarily owned by private individuals or companies. In a communist system, the state owns or controls the means of production. A free-market economy is characterized by minimal government intervention, allowing supply and demand to dictate the market.

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, and behavior of an economy as a whole, which includes households, firms, 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 processing to be used in the production of other goods.

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, and equipment that are used in the production of other goods or services. They are not finished goods but are used to make finished goods or provide services.

Question 7

Intermediate goods are not included to calculate the final output because:&#10;A)they do not have value&#10;B)they have unknown value&#10;C)their value is included in final goods so they are not added to avoid the problem of double counting&#10;D)none of the above

Accepted Answer

Intermediate goods are not included in the calculation of the final output to avoid double counting, as their value is already included in the value of the final goods.

Question 8

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. Net investment represents the amount spent on new assets minus any asset sales, while depreciation accounts for the reduction in value of assets over time. Therefore, gross investment includes total spending on new assets plus the costs to maintain or replace existing assets.

Question 9

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

The term free-market denotes an economic system where prices for goods and services are determined by the open market and consumers, with minimal government intervention and regulations.

Question 10

___________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 deals with the performance, structure, behavior, and decision-making of an economy as a whole, rather than individual markets. This includes national, regional, and global economies, and topics such as inflation, unemployment, and economic growth.

Question 11

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

The answer of The credit of development of macroeconomic approach...

Question 12

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 13

_________ 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...

Question 14

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 15

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 16

&#34;Capitalism&#34; refers to?&#10;A)The use of market&#10;B)Government ownership of capital&#10;C)Private ownership of capital goods&#10;D)Private ownership of homes & cars

Accepted Answer

The answer of &#34;Capitalism&#34; refers to?&#10;A)The use of market&#10;B)Government ownership...

Question 17

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 18

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...

Question 19

The value of NNP at consumer point is called the&#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 consumer point...

Question 20

Consider the following statements and identify the right ones.
i. While calculating GNP, income generated by foreigners in a country is taken into consideration
ii. While calculating GNP, income generated by nationals of a country outside the country is taken into account

A)I only
B)ii only
C)both
D)none

Accepted Answer

The answer of Consider the following statements and identify the...

Deck 1: Economics : Macroeconomics, Factors, Goods, and Indicators