introduction to macro economics section 3 Practice Questions Answers Test with Solutions & More Shortcuts
Introduction to Macro Economics PRACTICE TEST [6 - 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
Question : 1 [SSC IT 2007]
Imputed gross rent of owneroccupied buildings is a part of
a) intermediate consumption
b) consumer durable
c) final consumption
d) capital formation
Answer »Answer: (c)
The figure of final private consumption expenditure includes the imputed gross rent of owner-occupied dwellings, consumption of own-account production and payment by households of wages and salaries in kind valued at cost, e.g., provision for food, shelter and clothing to the employees, wherever they exist.
Production for self-consumption is a part of the production and hence an income and is also a part of final consumption expenditure.
Question : 2 [SSC CML 2002]
The self-employed in a developing country who are engaged in small scale labour intensive work belong to the
a) Secondary sector
b) Tertiary sector
c) Primary sector
d) Informal sector
Answer »Answer: (c)
Such a scenario is seen in the case of primary economic activities such as agriculture in the developing countries like India. Most of the primary activities are labour intensive where the volume of manpower substitutes the lack of technology. Besides, farmers are ‘self-employed.’
Question : 3 [SSC CAPFs 2016]
When average product of an input is at its maximum then : (AP= Average product) (MP= Marginal product)
a) AP > MP
b) AP < MP
c) AP = MP
d) AP = 0
Answer »Answer: (c)
There is a close relationship between marginal product and average product because both are derived from the total product. When marginal product is equal to average product, the average product is at its maximum.
In the short-run production function, since marginal product starts off as greater than average product and then falls below average product, we can assume that at the “cross-over point,”
when MP = AP, AP is at its maximum.
Question : 4 [SSC CPO 2016]
What will be the effect on inferior commodities when income of the consumer rises?
a) No effect
b) First increase then decrease
c) Positive effect
d) Negative effect
Answer »Answer: (d)
In economics, an inferior good is a good that decreases in demand when consumer income rises (or rises in demand when consumer income decreases), unlike normal goods, for which the opposite is observed.
Normal goods are those for which consumers’ demand increases when their income increases. Cheaper cars are examples of inferior goods.
Question : 5 [SSC SO 2006]
Who propounded the ‘market law ?
a) T.R. Malthus
b) David Recardo
c) J.B. Say
d) Adam Smith
Answer »Answer: (c)
Say’s law, or the law of market, is an economic principle of classical economics named after the French businessman and economist Jean-Baptiste Say (1767–1832), who stated that “products are paid for with products” and “a glut can take place only when there are too many means of production applied to one kind of product and not enough to another.
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Introduction to Macro Economics Shortcuts »
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indian economy MCQ CATEGORIES
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» Introduction to Indian Economy
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» Planning, Economic Development & Five year Plans
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» National Income & Human Development Index
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» Agriculture Sector, Subsidy and Food Processing
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» Industries, Manufacturing & Service Sectors
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» Inclusive growth, Sustainable development and employment
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» Poverty & Unemployment
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» Introduction to Micro Economics
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» Introduction to Macro Economics
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» Macro fundamentals, GDP, Investment, Growth
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» Demand & Supply, Profit Loss, Inflation & Price Index
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» Fiscal Policy, Public Finance and Monetary Policy
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» Money Supply, Banking and Financial Institutions
-
» Taxes Types, Methods & Budgeting Process
-
» Banking, Security Market & Insurance
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