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Worksheets

Macro Economics

Total questions: 44

Worksheet time: 27mins

Name
Class
Date
1.

What is GDP per capita?

a)

GDP divided by the value of capital inputs

b)

GDP divided by the population

c)

GDP divided by the number of workers

d)

GDP divided by the number of weeks in the year

2.

The rate of economic growth is measured by

a)

(original/difference) x 100

b)

difference x 100

c)

potential - actual level of output

d)

(difference/original) x 100

3.

A period of high economic activity and high employment is:

a)

A recovery

b)

A recession

c)

A boom

d)

A slowdown

4.

A period of high economic activity and high employment is:

a)

A recovery

b)

A recession

c)

A boom

d)

A slowdown

5.

A period of high economic activity and high employment is:

a)

A recovery

b)

A recession

c)

A boom

d)

A slowdown

6.

A period of high economic activity and high employment is:

a)

A recovery

b)

A recession

c)

A boom

d)

A slowdown

7.

Which of the following will NOT increase economic growth?

a)

Updates in technology

b)

Immigration

c)

Increased taxation

d)

Increased Government spending

8.

Unemployment occurs when

a)

Someone wants a job but can't find work

b)

Someone is able and willing to work but can't find a job

c)

Someone is able to work but does not have employment

d)

Work provided is not sufficient to meet the needs of workers

9.

The rate of unemployment is

a)

How many people are not in work / Total Population x 100

b)

Total Unemployed/Total population x 100

c)

Total unemployed/Workforce x 100

d)

Total unemployed/ (total employed + total unemployed) x 100

10.

Microeconomics studies individuals, Macroeconomics studies...

a)

macros

b)

individual decisions

c)

economic aggregates

d)

lots of little details

11.

Which is NOT a component of expenditure based GDP?

a)

S = Surplus

b)

C = Consumption

c)

I = Investment of new physical capital

d)

G = Government expenditure

e)

X = Exports

12.

An expansionary monetary policy will lower interest rates and...

a)

raise inflation.

b)

lower inflation.

c)

decrease liquidity.

d)

cause mortgage defaults.

13.

RBI may use a contractionary policy when...

a)

the economy is slowing down.

b)

there has been a negative economic shock.

c)

when inflation is too high.

d)

during a recession.

14.

C+I+G+(X-M)=

a)

Gross National Product

b)

Gross Domestic Product

c)

Gross National Debt

d)

Gross National Revenue

15.

C+I+G+(X-M)=

a)

Gross National Product

b)

Gross Domestic Product

c)

Gross National Debt

d)

Gross National Revenue

16.

(CPI) or the Consumer Price Index is best represented by which formula?

a)

C=I=G=(X-M)

b)

Number of Unemployed Persons / Labor Force.

c)

(Cost of basket in current period/Cost of basket in base period) × 100

d)

Y = C + I + G + X + Z.

17.

Rising prices =?

a)

inflation

b)

stagflation

c)

deflation

d)

dogflation

18.

A budget surplus is best described as which of the following

a)

Revenue is greater than expenses

b)

Revenue is less than expenses

c)

Revenue is equal to expenses

d)

Expenses is greater than revenue

19.
Buying bonds
a)
increases money supply
b)
decreases money supply
20.
Buying bonds
a)
increases money supply
b)
decreases money supply
21.
What is an action of monetary policy?
a)
reduce taxes
b)
changing reserve requirements
c)
increase spending
d)
borrow money for deficit
22.
What is an action of monetary policy?
a)
reduce taxes
b)
changing reserve requirements
c)
increase spending
d)
borrow money for deficit
23.
What happens to the money circulation, when the FED orders a tight money policy?
a)
more money is put out into circulation
b)
less money is put into circulation
c)
circulation stays the same
d)
interest rates rise
24.

Represents how goods, services, and money move through our economy.

a)

Circular Flow Diagram

b)

Supply Curve

c)

Demand Curve

d)

Supply and Demand Curve

25.
Net market value of all final of goods and services produced by people in or outside their country is called:
a)
Net National Product
b)
Gross National Product
c)
Gross Domestic Product
d)
National Income
26.
The total production of goods and services produced within the geographical boundaries of the country in a year is called_________.
a)
National Income
b)
Net National Product
c)
Gross National Product
d)
Gross Domestic Product
27.

Money is a medium of exchange, store of value, and a unit of account, durable, portable, divisible, and uniform.

a)

True

b)

False

28.

What is applicable to one individual unit or sector may not be applicable to the economy as a whole. This is called as

a)

Macroeconomic Paradox

b)

Exception to rule

c)

Mismanagement by Govt

d)

Giffen's law

29.

An estimate of total value of all the final products and services turned out in a given period by the means of production owned by a country's residents is called as

a)

Gross national product (GNP)

b)

Gross Domestic product (GDP)

c)

Net national product (NNP)

d)

Real national product (RNP)

30.

Household provide factor services and consumer spending to firms. Firms provide income and goods and services. This is known as

a)

Reciprocal flow of income

b)

Circular flow of income

c)

Mutual needs

d)

National Income

31.

Market Value of Finished Goods + Market Value of Finished Services - Depreciation =

a)

GDP

b)

GNP

c)

NNP

d)

NDP

32.

Which country ha highest PCI?

a)

USA

b)

China

c)

Singapore

d)

Qatar

33.

In 1950 ____ published a plan document called ‘Sarvodya Plan’.

a)

Jawaharlal Nehru

b)

Subhas Chandra Bose

c)

Jai Prakash Narayan

d)

Vishweshwarayya

34.

Planning Commission is renamed as

a)

NITI Aayog

b)

Yojana Mandal

c)

Public Private Planning

d)

Yojana Ayog

35.

National Development Council was setup in

a)

1952

b)

1942

c)

1962

d)

1972

36.

To discourage the imports most of the counties were following “_____” policy.

a)

Free Trade

b)

Globalisation

c)

Liberalisation

d)

Protection

37.

New economic policy was started during the Prime Ministership of

a)

Manmohan Singh

b)

Vajpayee

c)

P V Narasimha Rao

d)

Rajiv Gandhi

38.

Foreign exchange reserves were lowest in India in

a)

1988

b)

1991

c)

2001

d)

1996

39.

The growing economic interdependence of countries worldwide has necessitated

a)

Globalisation

b)

Protection policy

c)

Privatisation

d)

Nationalisation

40.

_____ implies that production is the key to economic growth and prosperity

a)

Malthusian theory

b)

Adam Smith

c)

Say's Law

d)

Keynson

41.

Keynes formulated a comprehensive theory to explain how the level of income and employment in an economy is determined

a)

Say's Law

b)

Adam Smith

c)

Recardo

d)

Keynes

42.

That aggregate demand at which the economy is in equilibrium is called

a)

Effective Supply

b)

Effective Employment

c)

Effective Demand

d)

Full Employment

43.

Who controls and regulates supply of money?

a)

Govt of India

b)

RBI

c)

Mudran Vibhag

d)

Finance ministry

44.

Present Exchange Rate is in the range of 1 USD =

a)

Rs. 50 to 60

b)

Rs. 60 to 70

c)

Rs. 70 to 80

d)

Rs. 80 to 90