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 : 6 [SSC CGL 2000]
Which one of the following items is included in the national income account?
a) Services of Sadhus
b) Services of night-watchmen
c) Income of smugglers
d) Services of housewives
Answer »Answer: (b)
National income is the total value of a country's final output of all new goods and services produced in one year.
Services provided by housewives, the income of smugglers and services of sadhus can be categorized as non-economic services and thus cannot be accounted for.
Question : 7 [SSC CML 2002]
While estimating national income which of the following is not taken into account?
a) Services of a housewife
b) Services of a maid servant
c) Services of a doctor
d) Services of a teacher
Answer »Answer: (a)
Services provided by housewives can be categorized as non-economic services and thus cannot be accounted in national income which is the sum total of all the goods and services produced in a country, in a particular period of time.
Question : 8 [SSC CGL 2016]
Backward bending supply curve belongs to which market?
a) Money
b) Inventories
c) Labour
d) Capital
Answer »Answer: (c)
In economics, the backward bending supply curve is related to labour.
Also known as the backwards-bending supply curve of labour, This curve models a situation where workers choose to substitute leisure time for work time, i.e. wages, thus reducing the pool of labour available.
It shows how the change in real wage rates affects the number of hours worked by employees.
Question : 9 [SSC SO 1997]
Which among the following statements is not true when there is an increase in interest rate in an economy ?
a) increase in production cost
b) increase in capital return
c) decrease in loan
d) increase in saving
Answer »Answer: (b)
Interest rates increase the cost of borrowing, which results in lesser investment activity and the purchase of consumer durables.
In a low interest-rate environment, shares become a more attractive buy, raising households’ financial assets. This may also contribute to higher consumer spending, and makes companies’ investment projects more attractive.
Lower interest rates also tend to cause currencies to depreciate: Demand for domestic goods rises when imported goods become more expensive. All of these factors raise output and employment as well as investment and consumer spending.
Question : 10 [SSC HSLDEO 2010]
Value of out put and value added can be distinguished if we know:
a) the value of the sales
b) the value of consumption of fixed capital
c) the value of net indirect taxes
d) the value of intermediate consumption
Answer »Answer: (d)
Intermediate consumption is an accounting flow that consists of the total monetary value of goods and services consumed or used up as inputs in production by enterprises, including raw materials, services and various other operating expenses.
Intermediate consumption (unlike fixed assets) is not normally classified in national accounts by type of good or service, because the accounts will show net output by sector of activity.
Because this value must be subtracted from Gross Output to arrive at GDP, how it is exactly defined and estimated will importantly affect the size of the GDP estimate.
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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
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» Taxes Types, Methods & Budgeting Process
-
» Banking, Security Market & Insurance
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