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Economics II_PUE July 2020

Total questions: 20

Worksheet time: 10mins

Name
Class
Date
1.

Per Capita National Income means:

a)

NNP/Population

b)

Total Capital/Population

c)

Population/NNP

d)

None of the above

2.

Which one of the following is NOT included in GNP?

a)

Production of the final goods in the current year

b)

Transfer Payments

c)

Capital Depreciation

d)

None of the above

3.

Which of the following is correct?

a)

GNP= Gross Net Production

b)

NNP=Net National Product

c)

NI=Net Income

d)

GDP=Gross Demand for Production

4.

Distinction between GNP & GDP is:

a)

Gross Foreign Investment

b)

Net Foreign Investment

c)

Net Export

d)

Net source of Income from Foreign

5.

Which one of the following is greater in the size?

a)

Gross National Product

b)

Net National Product

c)

National Income

d)

Personal Income

6.

Supply creates its own demand is advocated by:

a)

Marshall

b)

J.B. Say

c)

Keynes

d)

Ricardo

7.

Disguised unemployment means:

a)

Seasonal unemployment

b)

Where marginal productivity of labour is zero

c)

Frictional unemployment

d)

None of the above

8.

In classical theory, unemployment is only a :

a)

Short run problem

b)

long run problem

c)

Major problem

d)

Minor problem

9.

Temporary unemployment while changing of jobs is called:

a)

Frictional unemployment

b)

Voluntary unemployment

c)

Involuntary unemployment

d)

Seasonal unemployment

10.

Depression occurs because of:

a)

Frictional unemployment

b)

Voluntary unemployment

c)

Involuntary unemployment

d)

Seasonal unemployment

11.

Keynes suggested which of the following motives led to the demand for money in the economy:

a)

Transaction Motive

b)

Precautionary Motive

c)

Speculative Motive

d)

All of the Above

12.

which one of the following statement is NOT correct:

a)

The writer of the book 'The Purchasing power of money' was Irving Fisher

b)

The relation between the value of money & price level is an inverse one.

c)

If quantity of money is doubled, the price -level is halved.

d)

Quantity Theory of money is propounded by Fisher

13.

Velocity of money is related to :

a)

Quantity theory of money

b)

Income theory

c)

Theory of Interest

d)

None of these

14.

As per Fisher's quantity theory, The relationship between value of money & general price level is :

a)

Direct

b)

Indirect

c)

Inverse

d)

Proportional

15.

The correct form of fisher's equation is :

a)

PT= MV+M'V'

b)

MV=PT+M'V'

c)

P=(MV+M'V')/T

d)

1& 3 both are correct

16.

Which of the following is the Bank Money?

a)

Coins

b)

Currency

c)

Cash Reserves of Banks

d)

Demand Deposits in Banks

17.

Central Bank is a/an

a)

Regional Bank

b)

Commercial Bank

c)

Rural Bank

d)

Apex Bank

18.

What do you mean by credit creation by commercial Banks?

a)

It is the process of total withdrawal

b)

It is the process of loan creation

c)

It is the process of total deposit creation

d)

It is the process of creation of foreign exchange

19.

Barter system is

a)

Exchange of money

b)

Exchange of goods

c)

Exchange of trade

d)

Exchange of Foreign Exchange

20.

One of the measures of money supply is

a)

N1

b)

O1

c)

M1

d)

P1