introduction to macro economics section 5 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 CPO 2016]
Market segmentation is:
a) Market Division
b) Market Space
c) Dividing target groups as per their needs
d) Group of Sales Persons
Answer »Answer: (c)
Market segmentation is a marketing strategy that refers to the aggregating of prospective buyers into groups, or segments, having similar needs, wants, or demand characteristics.
Its objective is to design a marketing mix that precisely matches the expectations of customers in the targeted segment.
Question : 2 [SSC CAPFs 2015]
If a change in all inputs leads to a proportionate change in output, it is case of
a) Increasing returns to scale
b) Variable returns to scale
c) Diminishing returns to scale
d) Constant returns to scale
Answer »Answer: (d)
If output increases by that same proportional change as all inputs change then there are constant returns to scale (CRS).
If output increases by less than that proportional change in inputs, there are decreasing returns to scale (DRS). If output increases by more than that proportional change in inputs, there are increasing returns to scale (IRS).
Question : 3 [SSC CPO 2004]
When aggregate supply exceeds aggregate demand
a) inventories accumulate
b) unemployment develops
c) prices rise
d) unemployment falls
Answer »Answer: (a)
Deflation sets in when aggregate supply exceeds aggregate demand. Recession sets in.
This will lead to a buildup in stocks (inventories) and this sends a signal to producers either to cut prices (to stimulate an increase in demand) or to reduce output so as to reduce the buildup of excess stocks.
Either way - there is a tendency for output to move closer to the current level of demand.
Question : 4 [SSC CGL 2016]
The innovation theory of profit was proposed by
a) Schumpeter
b) Joan Robbinson
c) Clark
d) Marshall
Answer »Answer: (a)
The Innovation Theory of Profit was proposed by Joseph. A. Schumpeter, who believed that an entrepreneur can earn economic profits by introducing successful innovations.
In other words, the innovation theory of profit posits that the main function of an entrepreneur is to introduce innovations and the profit in the form of reward is given for his performance.
Question : 5 [SSC CAPFs 2016]
If total product is at its maximum then: (AP= Average product) (MP= Marginal product)
a) MP = 0
b) AP = MP = 0
c) AP < 0
d) AP = 0
Answer »Answer: (a)
Total product (TP) is the total output a production unit can produce, using different combinations of factors of production.
When marginal product =0 (at point D in the figure), the total product is at its maximum (as seen at point C in the figure given below). Then en as the marginal product becomes negative, the total product starts going down.
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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
-
» Planning, Economic Development & Five year Plans
-
» National Income & Human Development Index
-
» Agriculture Sector, Subsidy and Food Processing
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» Industries, Manufacturing & Service Sectors
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» Inclusive growth, Sustainable development and employment
-
» 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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