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) creation of immovable property
(b) assets in the form of jewellery
(c) holding assets in the form of cash
(d) holding assets in the form of bonds and shares
The correct answers to the above question in:
Answer: (c)
Liquidity preference refers to the demand for money, considered as liquidity. The concept was first developed by John Maynard Keynes in his book The General Theory of Employment, Interest and Money (1936).
It is the desire to hold money rather than other assets, in Keynesian theory based on motives of transactions, precaution, and speculation.
Discuss Form
Read more introduction to macro economics Based Indian Economy Questions and Answers
Question : 1
What is needed for creating demand ?
a) Income
b) Import
c) Price
d) Production
Answer »Answer: (d)
Demand refers to how much (quantity) of a product or service is desired by buyers.
The quantity demanded is the amount of a product people are willing to buy at a certain price; the relationship between price and quantity demanded is known as the demand relationship.
So for demand to originate, a product is required first.
Question : 2
Internal economies
a) accrue to a firm when it expands its output.
b) arise when there is expansion in internal trade.
c) arise in an economy as it makes progress.
d) arise when there is expansion in an industry.
Answer »Answer: (d)
Internal economies are those economies in production—those reductions in production costs—which accrue to the firm itself when it expands its output or enlarges its scale of production.
The internal economies arise within a firm as a result of its own expansion independent of the size and expansion of the industry as a whole.
Question : 3
Average propensity to consume is defined as
a) Change in consumption ¸ Change in income
b) Aggregate consumption ¸ Aggregate income
c) Aggregate income ¸ Aggregate consumption
d) Aggregate consumption ¸ Total population
Answer »Answer: (b)
In economics, the average propensity to consume (APC) is defined as the ratio of aggregate or total consumption to aggregate income in a given period of time.
Thus, the value of average propensity to consume, for any income level, may be found by dividing consumption by income.
Question : 4
Which of the following is not an investment expenditure in goods and services?
a) Purchase of machinery
b) An increase in business inventories
c) Purchase of a house
d) Expansion of the main plant of a company
Answer »Answer: (c)
Investment expenditure refers to the expenditure incurred either by an individual or a firm or the government for the creation of new capital assets like machinery, building etc.
Business inventories are goods that firms produce in one time period with the intent to sell later and they are counted as part of business investment. The purchase of a house cannot be considered an investment expenditure as it may be for personal use.
Question : 5
Production of a commodity mostly through the natural process is an activity of
a) Tertiary Sector
b) Technology Sector
c) Secondary Sector
d) Primary Sector
Answer »Answer: (d)
The primary sector of the economy is the sector of an economy making direct use of natural resources. This includes agriculture, forestry, fishing, mining, and extraction of oil and gas.
Question : 6
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.
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
Most Important Antonyms Vocabulary - IBPS Clerk Prelims 2024
Latest Antonyms multiple choice questions and answers with free PDFfor IBPS Clerk Prelims 2024. English Vocabulary practice exercise for all bank exam
Continue Reading »
Syllogism Practice Questions Answers PDF - IBPS Clerk 2024
Practice Verbal Reasoning Syllogism multiple choice questions and answers with Fully solved explanation, PDF for the IBPS Clerk Prelims 2024 Bank Exam
Continue Reading »
IBPS Clerk Prelims 2024 Synonyms Questions Solved Answers
Most important IBPS Clerk Prelims 2024 Synonyms and Antonyms multiple choice questions and answers with detailed solutions, English vocabulary PDF Download
Continue Reading »
New Cloze Test Questions and Answers PDF - IBPS Clerk 2024
The most important Cloze Test questions with detailed answers for upcoming IBPS Clerk prelims 2024. Latest English verbal ability practice MCQs, PDF
Continue Reading »