Macro Economics CBSE

For a closed economy(with no foreign trade), which one of the following is correct?

• GDP = GNP

• GDP>GNP

• GDP<GNP

• GDP+GNP=0

The value of__________ can be greater than one.

• MPC

• APC

• MPS

• APS

"The value of all goods and services can be expressed in monetary units"

On the basis of the given statement, identity the function performed by money:

• Medium of exchange

• Store of value

• Unit of account

• Means of standard of deferred payments

What is the formula for calculating Marginal Propensity to Consume (MPC)?

• MPC = Change in Consumption / Change in Income

• MPC = Change in Income / Change in Consumption

• MPC = Total Consumption / Total Income

• MPC = Total Income / Total Consumption

Which of the following is an example of Automatic Stabilizer in an economy?

• Unemployment Benefits

• Corporate Tax

• Interest Rates

• Government Subsidies

What is the relationship between Marginal Propensity to Save (MPS) and Average Propensity to Save (APS)?

• MPS = 1 - APS

• MPS = APS

• MPS = 1 + APS

• MPS = 2 * APS

What is the formula for calculating Average Propensity to Consume (APC)?

• APC = Change in Consumption / Change in Income

• APC = Change in Income / Change in Consumption

• APC = Total Consumption / Total Income

• APC = Total Income / Total Consumption

Which of the following is an example of Discretionary Fiscal Policy?

• Unemployment Benefits

• Corporate Tax

• Interest Rates

• Government Subsidies

What is the relationship between Marginal Propensity to Consume (MPC) and Marginal Propensity to Save (MPS)?

• MPC = 1 - MPS

• MPC = MPS

• MPC = 1 + MPS

• MPC = 2 * MPS

Pollution is created by factories is an example of:

• Positive Externalities

• Negative Externalities

• either (A) or (B)

• Neither (A) or (B)