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WorksheetsMacroeconomics
Total questions: 60
Worksheet time: 31mins
(a) controls a Government's revenue and spending is the hand of the Ministry of Finance.
What is Gross Domestic Product (GDP) means?
The total value of goods and services produced in a country in a single year in current (actual) prices.
The total value of goods and services produced in a country in a single year in constant prices.
This refers to the purchase of goods and services by individuals or households.
Investment
Export
Import
Consumption
Which method of protection raises revenue for the government?
Domestic subsidies
Embargo
Quota
Tariff
Which of these is NOT a characteristic of an unemployed person?
He/she does not work
He/she has made specific efforts to find a job
He/she is laid off from a job in the succeeding months
He/she is undergoing a career change
The purpose of regulating the money supply by the central bank is to:
promote economic growth
keep inflation under control
all the answers above
keep the economy from overheating or slowing down too quickly
Which one is not an economic policy?
Open door policy
Monetary Policy
Fiscal policy
Industrial Policy
In order to help the economy grow, the government can
increase spending
decrease spending
lower taxes
raise taxes
Fiscal policy deals with:
taxation
government's revenue and spending
government's borrowing
all the answers above
in the consumption funciton, C= a+bY,
'a' varies with change in income
b = ΔYΔC
'C' is independent of Y
'a' and 'b' varies with income while Y is constant
In which economy is the price policy applied?
Macroeconomic
Microeconomic
Normative Economics
Positive Economics
If the Keynesian consumption function is C=10+0.8 Y then, if disposable income is Rs 1000, what is amount of total consumption?
₹ 0.8
₹ 800
₹ 810
₹ 0.81
Depreciation is also known as
Consumption of fixed capital
Capital consumption allowances
Wear and tear loss of capital goods
All of above
The equilibrium level of national income in a closed economy is where
MPC = APC
Consumption equals savings
Aggregate expenditure equal National Income.
Unemployment rate is about 3 percent of labour force.
How many policies are there in macroeconomics?
1
2
3
4
What policy is controlled by the Central Bank?
Competitive policy
Price policy
Fiscal policy
Monetary policy
Macroeconomics does not study:
the behavior of individual businesses and consumers
overall economic trends
interactions among economic factors in the whole economy
the world economy
The average propensity to consume is measured by
C/Y
CxY
Y/C
C+Y
As income increases, consumption will _________
fall
not change
fluctuate
increase
The federal government decreases spending by $44 billion dollars. This would cause a shift from
AD 1 to AD 2
AD 1 to AD 3
AD 2 to AD 3
Profits from a UK football club, paid back to a wealthy foreign owner, would count as
UK's GNP
Foreign Country's GNP
import expenditure on the balance of trade of services
current transfers
Who among the following would be considered as unemployed?
A graduating student of legal age to work
An entrepreneur in the process of starting a new business
A secretary who has resigned from work & looking at job ads
A housewife running 2 internet shops at the same time
right to own private property is found in
socialism
capitalism
mixed economy
Both B and C
Consumption Function is the Functional Relation between
Income and saving
Price level and consumption
Income and consumption
ALL OF THE ABOVE
Samrat produces chicken for self consumption. Is his production counted in NI?
No - Black Market
No - Non-market Activity
No - Unreported Income
No - Purely financial transaction
An economy is in macroeconomic equilibrium. If Y = 200, C =100, I =30, G=40 and M =30, what is the value of exports?
60
40
90
80
Disposable income can be written as ___.
C = S + I
Y = C + I
Y = C + I + G
Y - T
Is this counted in the GDP of the US?
Cars made by a Japanese company in California.
Yes
No
How much is MPS in an economy when MPC is .8?
.2
3
1.6
.8
which is the following statement is correct in socialistic economy?
there should be equality income in economy
there should be right to own property
economic activity is carried out for self interest
Profit is the sole objective of economy
Transfer payment is not included in national income but included in....
GDP
Personal Income
NNP
GNP
The U.S. Government hired 10 Chinese-language experts, from a Chinese company based in Thailand, to train U.S. Workers.... what will be effect in US economy?
GDP decreases
GDP increases
GNP increases
No change
Inflation:
Always reduces the cost of living
Reduces the purchasing power of a money
Makes life easier
Increases the purchasing power of money
In the circular flow of income, government spending and exports are ___.
injections and leakages, respectively.
leakage and injections, respectively.
components of aggregate supply
injections
Transfer payment is not included in national income because..
It is illegal activity
It does not encourage the people to consume
It is only theoretical concept
It is payment made without reverse flow of good and services
How does the federal government borrow money?
asks members of parliament to fork over some of their salaries
raises taxes
sells treasury bonds
asks people on welfare for food stamps
Social insurance payment by employer's is added to
Personal income
Disposable income
Compensation of employees
all of above
Corporate profit is sum of
corporate profit tax +indirect tax + direct tax
Corporate tax + corporate dividends
Bonus + dividend + NFIA
Corporate profit tax + undistributed profit + distributed profit
The slope of the consumption function is
equal to the MPC and is equal to 1.
equal to the MPC and is less than 1.
not equal to the MPC and is less than 1.
equal to the MPC and is greater than 1.
Net national product does not include_______________.
Interest on consumer loans
Undistributed corporate profit
Taxes on corporate profits
Depreciation
4. The national income is
a. NNP at factor cost
b. NNP at market price
c. GNP at market price
d. GNP at factor cost
Macroeconomics approaches the study of economics from the viewpoints of
individual firms
individual consumers
government units
the entire economy
What will be the meaning of , if MPC = 0.75 ?
75% of increased income is spent on consumption.
0.75 % of increased income is spent on consumption
75% of income is spent on consumption.
0.75% of income is spent on consumption.
Cars, TVs, computers belong to household, in which part of the GDP formula?
GDP = C+I+G+(X-M)
Consumption Expenditures
Investment Expenditures
Government Expenditures
Net Imports
What do you understand by domestic factor receipt plus NFIA?
NDP at MP
NNP at MP
GNP at FC
National Income
In a circular flow of income in a closed economy with government intervention, leakage consists of _________________.
Investment and savings
Savings only
Savings and taxes
Savings, taxes and imports
Which of the following is an macroeconomics statement?
The price of Ipad increase about 8.5%.
The inflation rate of Nepal is 6.5% in 2022
FELDA profit increases every year
The price of chicken increasing during Chinese New Year
Gross investment equals to
Net investment + depreciation + change in stock
Net fixed investment + additions to stock + depreciation
gross capital formation + depreciation
net fixed investment + depreciation
The proportion of any change in income that is spent rather than saved is
the multiplier
income determinants
marginal propensity to consume
macroeconomic equilibrium
1.How many approaches in calculating national income?
4
3
2
1
The choice of method for calculating national income depends on
availability of data
expertism for calculation
availability of data, expertism of data and level of economy
non of above
All spending on final products in the year.
All Income made factors of production
All costs on all products.
The ammount of people involved in production.
When inflation is high the _______________of the currency decreases
cost value
purchasing power
importance
validity
When income is $200 consumption is $140, and when income is $250 consumption is $180. The marginal propensity to save is
0.80
0.75
0.25
0.20
Which one of the following is an intermediate product?
purchases of pulses by consumers
Machine purchased by a firm
wheat purchased by a flour mill
Wheat used by households
What would be the effect of an increase in imports?
Increase trade surplus
GDP decreases
People have more choices
no difference in economy
Over-production in developed countries may be released into the markets of developing nations, which undercuts domestic prices and domestic producers may be forced to leave the market. This is called....
Dumping
Quota
Tariffs
Embargo
Comprehensive social security system encourage people on
Future consumption
current consumption
saving for future
none of above
