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Economics Quiz XII - Objectives

Total questions: 120

Worksheet time: 3600secs

Name
Class
Date
1.

The branches of the subject Economics is .......................................

a)

Wealth and welfare

b)

production and consumption

c)

Demand and supply

d)

micro and macro

2.

Who coined the word ‘Macro’?

a)

Adam Smith

b)

J M Keynes

c)

Ragnar Frisch

d)

Karl Marx

3.

Who is regarded as Father of Modern Macro Economics?

a)

Adam Smith

b)

J M Keynes

c)

Ragnar Frisch

d)

Karl Marx

4.

Identify the other name for Macro Economics.

a)

Price Theory

b)

Income Theory

c)

Market Theory

d)

Micro Theory

5.

Macro economics is a study of ............................................................. .

a)

individuals

b)

firms

c)

a nation

d)

aggregates

6.

Indicate the contribution of J M Keynes to economics.

a)

Wealth of Nations

b)

General Theory

c)

Capital

d)

Public Fainance

7.

A steady increase in general price level is termed as................... .

a)

wholesale price index

b)

Business Cycle

c)

Inflation

d)

National Income

8.

Identify the necessity of Economic policies.

a)

to solve the basic problems

b)

to overcome the obstacles

c)

to achieve growth

d)

all the above

9.

Indicate the fundamental economic activities of an economy.

a)

Production and Distribution

b)

Production and Exchange

c)

Production and Consumption

d)

Production and Marketing

10.

An economy consists of...................................

a)

consumption sector

b)

Production sector

c)

Government sector

d)

All the above

11.

Identify the economic system where only private ownership of production exists.

a)

Capitalistic Economy

b)

Socialistic Economy

c)

Globalisic Economy

d)

Mixed Economy

12.

Economic system representing equality in distribution is ............... .

a)

Capitalism

b)

Globalism

c)

Mixedism

d)

Socialism

13.

Who is referred as ‘Father of Capitalism’?

a)

Adam Smith

b)

Karl Marx

c)

Thackeray

d)

J M Keynes

14.

The country following Capitalism is ........................... .

a)

Russia

b)

America

c)

India

d)

China

15.

Identify The Father of Socialism.

a)

J M Keynes

b)

Karl Marx

c)

Adam Smith

d)

Samuelson

16.

An economic system where the economic activities of a nation are done both by the private and public together is termed as .............................

a)

Capitalistic Economy

b)

Socialistic Economy

c)

Globalisic Economy

d)

Mixed Economy

17.

Quantity of a commodity accumulated at a point of time is termed as ................. .

a)

production

b)

stock

c)

variable

d)

flow

18.

Identify the flow variable.

a)

money supply

b)

assests

c)

income

d)

foreign exchange reserves

19.

Identify the sectors of a Two Sector Model.

a)

Households and Firms

b)

Private and Public

c)

Internal and External

d)

Firms and Government

20.

The Circular Flow Model that represents an open Economy.

a)

Two Sector Model

b)

Three Sector Model

c)

Four Sector Model

d)

All the above

21.

Net National product at factor cost is also known as .............................

a)

National Income

b)

Domestic Income

c)

Per capita Income

d)

Salary.

22.

Primary sector is .......................

a)

Industry

b)

Trade

c)

Agriculture

d)

Construction.

23.

National income is measured by using ........... methods.

a)

Two

b)

Three

c)

Five

d)

Four

24.

Income method is measured by summing up of all forms of ...............

a)

Revenue

b)

Taxes

c)

expenditure

d)

Income

25.

Which is the largest figure?

a)

Disposable income

b)

Personal Income

c)

NNP

d)

GNP

26.

Expenditure method is used to estimate national income in ..............

a)

Construction sector

b)

Agricultural Sector

c)

Service sector

d)

Banking sector

27.

Tertiary sector is also called as .......... sector

a)

Service

b)

Income

c)

Industrial

d)

Production

28.

National income is a measure of the ......... performance of an economy.

a)

Industrial

b)

Agricultural

c)

Economic

d)

Consumption

29.

Per capita income is obtained by dividing the National income by ............

a)

Production

b)

Population of a country

c)

Expenditure

d)

GNP

30.

GNP = .......... + Net factor income from abroad.

a)

NNP

b)

NDP

c)

GDP

d)

Personal income

31.

NNP stands for ..........

a)

Net National Product

b)

National Net product

c)

National Net Provident

d)

Net National Provident

32.

......... is deducted from gross value to get the net value.

a)

Income

b)

Depreciation

c)

Expenditure

d)

Value of final goods

33.

The financial year in India is ......

a)

April 1 to March 31

b)

March 1 to April 30

c)

March 1 to March 16

d)

January 1 to December 31

34.

When net factor income from abroad is deducted from NNP, the net value is .......

a)

Gross National Product

b)

Disposable Income

c)

Net Domestic Product

d)

Personal Income

35.

The value of NNP at production point is called ......

a)

NNP at factor cost

b)

NNP at market cost

c)

GNP at factor cost

d)

Per capita income

36.

The average income of the country is ....

a)

Personal Income

b)

Per capita income

c)

Inflation Rate

d)

Disposal Income

37.

The value of national income adjusted for inflation is called ....

a)

Inflation Rate

b)

Disposal Income

c)

GNP

d)

Real national income

38.

Which is a flow concept ?

a)

Number of shirts

b)

Total wealth

c)

Monthly income

d)

Money supply

39.

PQLI is the indicator of ..................

a)

Economic growth

b)

Economic welfare

c)

Economic progress

d)

Economic development

40.

The largest proportion of national income comes from .............

a)

Private sector

b)

Local sector

c)

Public sector

d)

None of the above

41.

Every able bodied person who is willing to work at the prevailing wage rate is employed called as ..........

a)

Full employment

b)

Under employment

c)

Unemployment

d)

Employment opportunity

42.

Structural unemployment is a feature in a ...........

a)

Static society

b)

Socialist society

c)

Dynamic society

d)

Mixed economy

43.

In disguised unemployment, the marginal productivity of labour is .....

a)

Zero

b)

One

c)

Two

d)

Positive

44.

The main contention of the Classical Economic Theory is ........

a)

Under employment

b)

Economy is always in the state of equilibrium

c)

Demand creates its supply

d)

Imperfect competition

45.

J.B. Say is a ..........................

a)

Neo Classical Economist

b)

Classical Economist

c)

Modern Economist

d)

New Economist

46.

According to Keynes, which type of unemployment prevails in capitalist economy ?

a)

Full employment

b)

Voluntary unemployment

c)

Involuntary unemployment

d)

Under employment

47.

The core of the classical theory of employment is ............

a)

Law of Diminishing Return

b)

Law of Demand

c)

Law of Markets

d)

Law of Consumption

48.

Keynes attributes unemployment to ..............

a)

A lack of effective supply

b)

A lack of effective demand

c)

A lack of both

d)

None of the above

49.

.......... Flexibility brings equality between saving and investment.

a)

Demand

b)

Supply

c)

Capital

d)

Interest

50.

............ theory is a turning point in the development of modern economic theory.

a)

Keynes’

b)

Say’s

c)

Classical

d)

Employment

51.

The basic concept used in Keynes Theory of Employment and Income is................

a)

Aggregate demand

b)

Aggregate supply

c)

Effective demand

d)

Marginal Propensity Consume

52.

The component of aggregate demand is .............

a)

Personal demand

b)

Government expenditure

c)

Only export

d)

Only import

53.

Aggregate supply is equal to .............

a)

C + I + G

b)

C + S + G + (x-m)

c)

C + S + T + (x-m)

d)

C + S + T + Rf

54.

Keynes theory pursues to replace laissez faire by ............

a)

No government intervention

b)

Maximum intervention

c)

State intervention in certain situation

d)

Private sector intervention

55.

In Keynes theory of employment and income, .............. is the basic cause of economic depression.

a)

Less production

b)

More demand

c)

Inelastic supply

d)

Less aggregate demand in relation to productive capacity.

56.

Classical theory advocates ......

a)

Balanced budget

b)

Unbalanced budget

c)

Surplus budget

d)

Deficit budget

57.

Keynes theory emphasized on ...... equilibrium.

a)

Very short run

b)

Short run

c)

Very long run

d)

Long run

58.

According to classical theory, rate of interest is a reward for ......

a)

Investment

b)

Demand

c)

Capital

d)

Saving

59.

In Keynes theory, the demand for and supply of money are determined by ....

a)

Rate of interest

b)

Effective demand

c)

Aggregate demand

d)

Aggregate supply

60.

Say’s law stressed the operation of ............. in the economy.

a)

Induced price mechanism

b)

Automatic price mechanism

c)

Induced demand

d)

Induced investment

61.

The average propensity to consume is measured by..........................

a)

C/Y

b)

CxY

c)

Y/C

d)

C+Y

62.

An increase in the marginal propensity to consume will:

a)

Lead to consumption function becoming steeper

b)

Shift the consumption function upwards

c)

Shift the consumption function downwards

d)

Shift savings function upwards

63.

If the Keynesian consumption function is C=10+0.8 Y then, if disposable income is Rs 1000, what is amount of total consumption?

a)

Rs. 0.8

b)

Rs. 800

c)

Rs.810

d)

Rs.0.81

64.

If the Keynesian consumption function is C=10+0.8Y then, when disposable income is Rs 100, what is the marginal propensity to consume?

a)

Rs.0.8

b)

Rs.800

c)

Rs.810

d)

Rs.0.81

65.

If the Keynesian consumption function is C=10+0.8 Y then, and disposable income is Rs100, what is the average propensity to consume?

a)

Rs.0.8

b)

Rs.800

c)

Rs.810

d)

Rs.0.9

66.

As national income increases

a)

The APC falls and gets nearer in value to the MPC.

b)

The APC always approaches infinity.

c)

The APC increases and diverges in value from the MPC.

d)

The APC stays constant

67.

As increase in consumption at any given level of income is likely to lead

a)

Higher aggregate demand

b)

An increase in exports

c)

A fall in taxation revenue

d)

A decrease in import spending

68.

Lower interest rates are likely to :

a)

Decrease in consumption

b)

Increase cost of borrowing

c)

Encourage saving

d)

Increase borrowing and spending

69.

The MPC is equal to :

a)

Total spending / total consumption

b)

Total consumption/total income

c)

Change in consumption /change in income

d)

none of the above.

70.

The relationship between total spending on consumption and the total income is the

a)

Consumption function

b)

Savings function

c)

Investment function

d)

aggregate demand function

71.

The sum of the MPC and MPS is

a)

1

b)

2

c)

0.1

d)

1.1

72.

As income increases, consumption will ........................

a)

fall

b)

not change

c)

fluctuate

d)

increase

73.

When investment is assumed autonomous the slope of the AD schedule is deter-mined by the..........................

a)

marginal propensity to invest

b)

disposable income

c)

marginal propensity to consume

d)

average propensity to consume

74.

The multiplier tells us how much ................... changes after a shift in ..............

a)

Consumption , income

b)

investment, output

c)

savings, investment

d)

output, aggregate demand

75.

The multiplier is calculated as....................

a)

1/(1-MPC)

b)

1/MPS

c)

1/MPC

d)

a and b

76.

If the MPC is 0.5, the multiplier is ............................

a)

2

b)

1/2

c)

0.2

d)

20

77.

In an open economy import ................................. the value of the multiplier

a)

Reduces

b)

increase

c)

does not change

d)

changes

78.

According to Keynes, investment is a function of the MEC and

a)

Demand

b)

Supply

c)

Income

d)

Rate of interest

79.

The term super multiplier was first used by....................

a)

J.R.Hicks

b)

R.G.D. Allen

c)

Kahn

d)

Keynes

80.

The term MEC was introduced by............................

a)

Adam Smith

b)

J.M. Keynes

c)

Ricardo

d)

Malthus

81.

The RBI Headquarters is located at..................................

a)

Delhi

b)

Chennai

c)

Mumbai

d)

Bengaluru

82.

Money is................................

a)

acceptable only when it has intrinsic value

b)

constant in purchasing power

c)

the most liquid of all assets

d)

needed for allocation of resources

83.

Paper currency system is managed by the...................

a)

Central Monetary authority

b)

State Government

c)

Central Government

d)

Banks

84.

The basic distinction between M1 and M2 is with regard to .

a)

post office total deposits

b)

terms deposits of banks

c)

saving deposits with post office savings banks

d)

currency

85.

Irving Fisher’s Quantity Theory of Money was popularized in...............

a)

1908

b)

1910

c)

1911

d)

1914.

86.

MV stands for................

a)

demand for money

b)

supply of legal tender money

c)

Supply of bank money

d)

Total supply of money

87.

Inflation means........................

a)

Prices are rising

b)

Prices are falling

c)

Value of money is increasing

d)

Prices are remaining the same

88.

............. inflation results in a serious depreciation of the value of money.

a)

Creeping

b)

Walking

c)

running

d)

Hyper

89.

....................... inflation occurs when general prices of commodities increases due to increase in production costs such as wages and raw materials.

a)

Cost-push

b)

demand pull

c)

running

d)

galloping

90.

During inflation, who are the gainers?

a)

Debtors

b)

Creditors

c)

Wage and salary earners

d)

Government

91.

....................... is a decrease in the rate of inflation.

a)

Disinflation

b)

Deflation

c)

Stagflation

d)

Depression

92.

Stagflation combines the rate of inflation with....................

a)

Stagnation

b)

employment

c)

output

d)

price

93.

The study of alternating fluctuations in business activity is referred to in Economics as

a)

Boom

b)

Recession

c)

Recovery

d)

Trade cycle

94.

During depression the level of economic activity becomes extremely

a)

high

b)

bad

c)

low

d)

good

95.

“Money can be anything that is generally acceptable as a means of exchange and that the same time acts as a measure and a store of value”, This definition was given by

a)

Crowther

b)

A.C.Pigou

c)

F.A.Walker

d)

Francis Bacon

96.

Debit card is an example of........................

a)

currency

b)

paper currency

c)

plastic money

d)

money

97.

Fisher’s Quantity Theory of money is based on the essential function of money as

a)

measure of value

b)

store of value

c)

medium of exchange

d)

standard of deferred payment

98.

V in MV = PT equation stands for................

a)

Volume of trade

b)

Velocity of circulation of money

c)

Volume of transaction

d)

Volume of bank and credit money

99.

When prices rise slowly, we call it

a)

galloping inflation

b)

mild inflation

c)

hyper inflation

d)

deflation

100.

................ inflation is in no way dangerous to the economy.

a)

walking

b)

running

c)

creeping

d)

galloping

101.

A Bank is a...........................

a)

Financial institution

b)

Corporate

c)

An Industry

d)

Service institutions

102.

A Commercial Bank is an institutions that provides services..................

a)

Accepting deposits

b)

Providing loans

c)

Both a and b

d)

None of the above

103.

The Functions of commercial banks are broadly classified into...............

a)

Primary Functions

b)

Secondary functions

c)

Other functions

d)

a, b, and c

104.

Bank credit refers to........

a)

Bank Loans

b)

Advances

c)

Bank loans and advances

d)

Multiplication of loans and advances

105.

Credit creation means.

a)

Multiplication of loans and advances

b)

Revenue

c)

Expenditure

d)

Debt

106.

NBFI does not have.

a)

Banking license

b)

government approval

c)

Money market approval

d)

Finance ministry approval

107.

Central bank is --------------- authority of any country.

a)

Monetary

b)

Fiscal

c)

Wage

d)

National Income

108.

Who will act as the banker to the Government of India?

a)

SBI

b)

NABARD

c)

ICICI

d)

RBI

109.

Lender of the last resort is one of the functions of.

a)

Central Bank

b)

Commercial banks

c)

Land Development Banks

d)

Co-operative banks

110.

Bank Rate means.

a)

Re-discounting the first class securities

b)

Interest rate

c)

Exchange rate

d)

Growth rate

111.

Repo Rate means.

a)

Rate at which the Commercial Banks are willing to lend to RBI

b)

Growth rate of the economy

c)

Rate at which the RBI is willing to lend to commercial banks

d)

Exchange rate of the foreign bank

112.

Moral suasion refers.

a)

Optimization

b)

Maximization

c)

Persuasion

d)

Minimization

113.

ARDC started functioning from

a)

June 3, 1963

b)

July 3, 1963

c)

June 1, 1963

d)

July 1, 1963

114.

NABARD was set up in.

a)

July 1962

b)

July 1972

c)

July 1982

d)

July 1992

115.

EXIM bank was established in.

a)

June 1982

b)

April 1982

c)

May 1982

d)

March 1982

116.

The State Financial Corporation Act was passed by.....................

a)

Government of India

b)

Government of Tamilnadu

c)

Government of Union Territories

d)

Local Government

117.

Monetary policy is formulated by.

a)

Co-operative banks

b)

Commercial banks

c)

Central Bank

d)

Foreign banks

118.

Online Banking is also known as.

a)

E-Banking

b)

Internet Banking

c)

RTGS

d)

NEFT

119.

Expansions of ATM.

a)

Automated Teller Machine

b)

Adjustment Teller Machine

c)

Automatic Teller mechanism

d)

Any Time Money

120.

2016 Demonetization of currency includes denominations of................

a)

Rs. 500 and Rs.1000

b)

Rs.1000 and Rs. 2000

c)

Rs.200 and Rs.500

d)

All the above

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