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Quiz 1 Basics of Macro Economics

Total questions: 30

Worksheet time: 15mins

Name
Class
Date
1.

Economics is

a)

What we think, what we don't think

b)

What we understand

c)

What we don't understand

d)

Allocation of scarce resources

2.

Macro Economics is better than Micro Economics

a)

True

b)

False

c)

Can't say

d)

All of the above

3.

Macro Economics deals with

a)

Maximum satisfaction of consumer

b)

Max satisfaction of producer through maximum profit

c)

Maximum Welfare

d)

All of the above

4.

Macro Economics deals with partial & overall equilibrium.

a)

True

b)

False

c)

Can't say

d)

Don't understand

5.

Which is not the scope of study of Macro Economics?

a)

Theory of money & banking

b)

Theory of employment

c)

Estimation of Individuals Income & aggregates

d)

Role of Government

6.

Which among them is related to Macro Economics.

a)

Option A

b)

Option B

c)

Option C

d)

Option D

e)

None of them

7.

Which combination of sectors among them is not a part of Closed Economy?

a)

Households & Producers

b)

Households, Producers & Government

c)

All of the above

d)

None of the above

8.

Factor Payments & Factors of production are exactly the same thing.

a)

True

b)

False

c)

Ask school teacher

d)

Ask Abhinav Upadhyay sir

9.

'Households should not save' is an assumption while understanding the concept of Circular Flow of 2 sector economy.

a)

True

b)

False

10.

Providing factors of production & receiving factor Receipts is the Money Flow in Circular Flow of 2 sector economy.

a)

True

b)

False

11.

Real flow deals with flow of goods & services

a)

True

b)

False

12.

Conditions of Consumption Expenditure are

a)

There should be an expenditure

b)

Indirect Satisfaction must be received

c)

Direct Satisfaction must be received

d)

Option 1 & 2 both

e)

Option 1 & 3 both

13.

Car purchased by household is

a)

Consumption expenditure

b)

Investment expenditure

c)

Inventory expenditure

d)

None of the above

14.

Depreciation is

a)

Non cash expenditure

b)

Replacement reserve

c)

Depreciation reserve

d)

All of the above

15.

Fall in the market value of assets as a result of economic recession is

a)

Expected obsolescence

b)

Unexpected obsolescence

c)

Routine obsolescence

d)

Sometimes obsolescence

16.

Less depreciation reserve leads high profits and finally leads to future rise in GDP.

a)

True

b)

False

17.

What should we do in Net Investments to reach to Gross Investments?

a)

Reduce Depreciation

b)

It's already equal

c)

Add Depreciation

d)

None of the above

18.

Construction of Community Park for the health of public by government is ________________ expenditure.

a)

Investment

b)

Consumption

c)

Fixed

d)

Variable

19.

Expenditure of purchase of building by producer who is dealing in shoe manufacturing is

a)

Fixed Investment

b)

Inventory Investment

c)

Both of the above

d)

None of the above

20.

Expenditure made by Non government private organizations is a consumption expenditure.

a)

True

b)

False

21.

Payment of fees to a lawyer engaged by a firm is which good?

a)

Intermediate Good

b)

Final Good

22.

Expenditure on providing free lunch to the employees by a firm is what expenditure?

a)

Intermediate Good Expenditure

b)

Final Good Expenditure

23.

Expenditure by a firm on payment of Audit Fess to a CA.

a)

Intermediate Good Expenditure

b)

Final Good Expenditure

24.

Purchase of uniforms for nurses by a hospital is what good?

a)

Intermediate Goods

b)

Final Goods

25.

Purchase of uniform by Mr A for her daughter is which Good?

a)

Intermediate Goods

b)

Final Goods

26.

Purchase of House by ABC Ltd for employees and provided rent free to them is which type of Good?

a)

Intermediate Good

b)

Final Good

27.

A person who is a End User of a good treat that good as Final Good?

a)

True

b)

False

28.

Capital Formation is Change in Fixed Investment during the year?

a)

True

b)

False

29.

Closing Investments - Opening Investments =

a)

Net Investments

b)

Gross Investments

30.

Closing Inventory Investments - Opening Inventory Investments = Change is stock of capital.

a)

True

b)

False