introduction to macro economics section 5 MCQ Questions & Answers Detailed Explanation
MOST IMPORTANT indian economy mcq - 6 EXERCISES
-
New 500+ Macro Economics Introduction GK MCQ Quiz For SSC »
-
599+ Macro Economics Basic GK MCQ Quiz PDF For BANK Exams »
-
499+ Macroeconomics Fundamentals GK MCQ Quiz PDF For IBPS »
-
Top 500+ Macroeconomics Concepts GK MCQ Quiz PDF For UPSC »
-
500+ Macroeconomics Concepts Purpose Overview GK MCQ Quiz »
-
1000+ Macroeconomics MCQ Test PDF For SBI & IBPS PO Exams »
The following question based on Introduction to Macro Economics topic of indian economy mcq
(a) Dadabhai Naoroji
(b) National Sample Survey Organisation
(c) National Income Committee
(d) Central Statistical Organisation
The correct answers to the above question in:
Answer: (a)
Dadabhai Naoroji prepared the first estimates of National income in 1876. He estimated the national income by first estimating the value of agricultural production and then adding a certain percentage as nonagricultural production.
However, such a method can only be called a non-scientific method. The first person to adopt a scientific procedure in estimating the national income was Dr VKRV Rao in 1931.
Discuss Form
Read more introduction to macro economics Based Indian Economy Questions and Answers
Question : 1
The equilibrium price of a commodity will definitely rise if there is a/an :
a) decrease in both demand and supply.
b) increase in demand accompanied by a decrease in supply.
c) increase in both demand and supply.
d) increase in supply combined with a decrease in demand.
Answer »Answer: (b)
The price of a commodity is always determined by the forces of demand and supply in the market.
The price at which the amount demanded and the amount supplied are equal is known as ‘equilibrium price.’
The equilibrium price definitely increases when there is an increase in demand combined with a decrease in supply.
Question : 2
Which one of the following is not included while estimating national income through income method?
a) Pension
b) Undistributed profits
c) Mixed incomes
d) Rent
Answer »Answer: (a)
The income approach equates the total output of a nation to the total factor income received by residents or citizens of the nation. Transfer incomes are excluded from national income.
Therefore, wages of labourers will be included, pensions of retired workers will be excluded from national income.
Labour income includes compensations in kind. Non-labour income includes dividends, undistributed profits of corporations before taxes, interest, rent, royalties, profits of non-incorporated enterprises and of government enterprises.
Question : 3
Gross National Product means
a) gross value of raw materials and semi-finished products
b) money value of inputs and outputs
c) money values of the total national production for any given period
d) gross value of finished goods
Answer »Answer: (c)
Gross national product (GNP) is the market/monetary value of all products and services produced in one year by labour and property supplied by the residents of a country.
Question : 4
Which of the following costs is related to marginal cost?
a) Prime Cost
b) Fixed Cost
c) Implicit Cost
d) Variable Cost
Answer »Answer: (d)
In economics, marginal cost is the change in the total cost that arises when the quantity produced is incremented by one unit.
That is, it is the cost of producing one more unit of a good. Marginal cost is independent of the fixed cost and depends on the changes in the variable factors.
Since fixed costs do not change with output, there are no marginal fixed costs when output is increased in the short run.
It is only the variable costs that vary with output in the short run. Therefore, the marginal costs are in fact due to the changes in variable costs, and whatever the amount of fixed cost, the marginal cost is unaffected by it.
Question : 5
An employer goes on employing more and more of a factor units until :
a) the Diminishing Marginal Returns sets into operation.
b) the Marginal Revenue Productivity of a factor becomes equal to its reward.
c) the Marginal Revenue Productivity becomes zero.
d) the Average Revenue Productivity becomes equal to Marginal Revenue Productivity.
Answer »Answer: (b)
According to the Marginal Productivity Theory, the reward or the price of a factor unit depends upon its productivity or its contribution to the total product. While employing a factor, an employer compares the marginal revenue productivity (MRP) of the lost unit and the marginal cost of the factor.
He will employ a factor up to the point where the reward (marginal cost of the factor) paid to the factor equals its MRP.
If MRP is more than the marginal cost, the employer increases its profits by employing more units of the factor; on the other hand, if the marginal cost of the factor is greater than MRP, it will reduce employment to reduce its loss.
Question : 6
Economic profit or normal profit is the same as :
a) maximum profit
b) net profit
c) accounting profile
d) optimum profit
Answer »Answer: (b)
Normal profit or economic profit is an economic condition occurring when the difference between a firm’s total revenue and the total cost is equal to zero. Simply put, normal profit is the minimum level of profit needed for a company to remain competitive in the market.
In a sense, normal profit is the same as net profit which is calculated by subtracting a company’s total expenses from total revenue, thus showing what the company has earned (or lost) in a given period of time.
Accounting profit occurs when revenues are greater than costs, and not equal, as in the case of normal profit.
GET Introduction to Macro Economics PRACTICE TEST EXERCISES
introduction to macro economics section 1
introduction to macro economics section 2
introduction to macro economics section 3
introduction to macro economics section 4
introduction to macro economics section 5
introduction to macro economics section 6
Introduction to Macro Economics Shortcuts and Techniques with Examples
Verbal Reasoning
Question & Answer Quiz
Non Verbal Reasoning
Question & Answer Quiz
Quantitative Aptitude
Question & Answer Quiz
Computer MCQ
Question & Answer Quiz
General English
Question & Answer Quiz
History GK
Question & Answer Quiz
Polity GK
Question & Answer Quiz
Geography GK
Question & Answer Quiz
Economy GK
Question & Answer Quiz
General Awareness GK
Question & Answer Quiz
Recently Added Subject & Categories For All Competitive Exams
100+ Quadratic Equation Questions Answers PDF for Bank
Quadratic Equation multiple choice questions with detailed answers for IBPS RRB SO. more than 250 Attitude practice test exercises for all competitive exams
Continue Reading »
IBPS Aptitude Linear Equations MCQ Questions Answers PDF
Linear equations multiple choice questions with detailed answers for IBPS RRB SO. more than 250 Attitude practice test exercises for all competitive exams
Continue Reading »
New 100+ Compound Interest MCQ with Answers PDF for IBPS
Compound Interest verbal ability questions and answers solutions with PDF for IBPS RRB PO. Aptitude Objective MCQ Practice Exercises all competitive exams
Continue Reading »
100+ Mixture and Alligation MCQ Questions PDF for IBPS
Most importantly Mixture and Alligation multiple choice questions and answers with PDF for IBPS RRB PO. Aptitude MCQ Practice Exercises all Bank Exams
Continue Reading »