WorksheetsREVESION MCQ'S 0N MACROECONOMIC POLICIES
Total questions: 20
Worksheet time: 19mins
"Macro Economic policy means that government does such things as slow down or speed up the growth rate of money supply , raise or cut tax rates, govt. spending and impose or withdraw controls on prices and wages" whose definition is this?
A. G. Hart
Harry johnson
R.P. Kent
Edward Shapiro
Which of the following is not an objective of macroeconomic policies?
Full employment
Price fluctuation
Economic growth
External equilibrium
'Full employment is a situation in which aggregate employment is ________________ in response to an increase in the effective demand for its output'
elastic
inelastic
perfectly elastic
none of the above
Which policy involves the government selling off nationalised firms?
Reduce trade union power
Privatisation
Deregulation
Encouraging competition
'moderate rate of inflation around 2% to 3% is desirable for the healthy growth of the economy'
true
false
primarily there are _________________ important instruments of macroeconomic policies
three
four
one
two
____________ is the policy that deals with supply of money and credit in the economy
fiscal policy
monetary policy
supply- side policy
none of the above
the term 'Monetary policy' is also known as
Credit policy
contractionary policy
Capital policy
none of these
which of the following is not an objective of monetary policy?
generation of employment
price stability
taxation
exchange rate stability
types of monetary policy
expansionary
contractionary
all of the above
none of the above
what is the purpose of Monetary Policy?
contribute to economic growth and stability
keep rich people from getting too rich
Functions like Fiscal Policy
give the political parties more control of the economy
following are limitations of monetary policy:
a) existance of unorganized sector
b) existance of less developed money market
c) global scenario
only a is correct
only b is correct
all are correct
only a and b is correct
the word 'fiscal policy' is derived from latin word 'Fisc', which refers to public (or government) treasury
true
false
which of the following is / are instruments of fiscal policy?
public revenue
public expenditure
budget
all of the above
which of the following is not an advantages of fiscal policy?
organised structure
expansionary fiscal policy
contractinary fiscal policy
none of these
limitations of fiscal policy:
unproductive public expendiure
time consuming
ineffective in isolation
all of these
the primary objective of monetary policy is to maintain price stability while keeping in mind the objective of growth.
true
false
the policy that deals with the creation and controlof credit is known as:
capital
fiscal policy
credit policy
none of the above
the creation of credit is done by the __________ banks
commercial bank
urban bank
central bank
all of the above
Fiscal policy in India is formulated by
RBI
Finance ministry
planning commission
securities and exchange board of India
