Macro economics is a study of_________

(a)

individuals

(b)

firms

(c)

a nation

(d)

aggregates

Quantity of a commodity accumulated at a point of time is termed as ____________..

(a)

production

(b)

stock

(c)

variable

(d)

flow

Pick basic composition of three sector of model of economy

(a)

Y = C + I + G + (X – M)

(b)

Y = C + I + G

(c)

Y = C + S

(d)

Y = C + I

In the circular-flow diagram

(a)

Firms are sellers in the resource market and the product market

(b)

Households are sellers in the resource market

(c)

Firms are buyers in the product market

(d)

Spending on goods and services flow from firms to households

Match the correct codes

1	Y = C + I	i	Don’t exist
2.	Y = C + I + G	ii	Two Sector
3.	Y = C + I + G + (X – M)	iii	Three Sector
4.	Y = C	iv	Four Sector

(a)

(1) – (i) (2) – (ii) (3) – (iv) (4) – (iii)

(b)

(1) – (ii) (2) – (iii) (3) – (iv) (4) – (i)

(c)

(1) – (iv) (2) – (iii) (3) – (i) (4) – (ii)

(d)

(1) – (i) (2) – (ii) (3) – (iii) (4) – (iv)

National income is a measure of the__________ performance of an economy

(a)

Industrial

(b)

Agricultural

(c)

Economic

(d)

Consumption

When net factor income from abroad is deducted from NNP, the net value is__________

(a)

Gross National Product

(b)

Disposable Income

(c)

Net Domestic Product

(d)

Personal Income

In the context of Labour income, which of the following is wrong?

(a)

Wages and salaries

(b)

fringe benefits

(c)

employer’s contribution to social security

(d)

state insurance

Windfall gains such as lotteries are also not to be included as they do not represent receipts from any _________ productive activity

(a)

current

(b)

previous

(c)

future

(d)

none of the above

GDP Deflator is equal to________

(a)

\(\cfrac { (NominalGDP) }{ (NominalGDP) } \times 100\)

(b)

\(\cfrac { (RealGDP) }{ (NominalGDP) } \times 100\)

(c)

\(\cfrac { (NominalGNP) }{ (RealGNP) } \times 100\)

(d)

\(\cfrac { (NominalNDP) }{ (RealNDP) } \times 100\)

Every able bodied person who is willing to work at the prevailing wage rate is employed called as ___________

(a)

Full employment

(b)

Under employment

(c)

Unemployment

(d)

Employment opportunity

Say’s law stressed the operation of________ in the economy

(a)

Induced price mechanism

(b)

Automatic price mechanism

(c)

Induced demand

(d)

Induced investment

Classicism theory is based on _________ equilibrium.

(a)

Very short run

(b)

Short run

(c)

Long run

(d)

very long run

In classical theory of employment, there is the possibility of:

(a)

Voluntary unemployment

(b)

No unemployment

(c)

Involuntary unemployment

(d)

Disguised unemployment

Which of the following was not a classical economist?

(a)

Adam Smith

(b)

Thomas R. Malthus

(c)

John Stuart Mill

(d)

John Maynard Keynes

The MPC is equal to :

(a)

Total spending / total consumption

(b)

Total consumption / total income

(c)

Change in consumption / change in income

(d)

none of the above

According to Keynes, investment is a function of the MEC and _________

(a)

Demand

(b)

Supply

(c)

Income

(d)

Rate of interest

The value of multiplier itself depends on ______ or marginal propensity to consume.

(a)

savings function

(b)

investment function

(c)

consumption function

(d)

interest function

Arrange the order of accelerator effects Increase in consumer demand Films get close to fill capacity Films invest to meet rising demand

(a)

I, II, III

(b)

II, I, III

(c)

III, II, I

(d)

III, I, II

Keynes considered subjective and objective factors:

(a)

Important determinants of consumption

(b)

Unimportant determinants of consumption

(c)

Determinants of investment

(d)

Determinants of business’s willingness to pay

Paper currency system is managed by the

(a)

Central Monetary authority

(b)

State Government

(c)

Central Government

(d)

Banks

During inflation, who are the gainers?

(a)

Debtors

(b)

Creditors

(c)

Wage and salary earners

(d)

Government

"The purchasing power of money" was a book published by________in 1911

(a)

J.M. Keynes

(b)

Irving Fisher

(c)

Adam smith

(d)

Ricardo

_____ is a branch of economics that provides a framework for analyzing money.

(a)

Fiscal Economics

(b)

Micro Economics

(c)

Monetary Economics

(d)

International Economics

Inflation is measured by the
I. consumer price index (CPI).
II. GDP deflator.
III. current account.
IV. depreciation.

(a)

I and II only.

(b)

I and III only.

(c)

III and IV only.

(d)

I, II and III.

Repo Rate means.

(a)

Rate at which the Commercial Banks are willing to lend to RBI

(b)

Rate at which the RBI is willing to lend to commercial banks

(c)

Exchange rate of the foreign bank

(d)

Growth rate of the economy

Monetary policy his formulated by.

(a)

Co-operative banks

(b)

Commercial banks

(c)

Central Bank

(d)

Foreign banks

Demand Deposits refers to deposits that can be withdrawn by individuals _____ to the bank.

(a)

without any prior notice

(b)

with prior notice

(c)

both a and b are correct

(d)

none of the above

Who is associated with the doctrine of “monetarism” and who received Nobel prize in 1976?

(a)

Milton Friedman

(b)

Joseph Schumpeter

(c)

John Stuart Mill

(d)

Keynes

Match the correct codes

1	Commercial banks issue letters of credit to their customers to certify their creditworthiness	i	Issuing Traveler’s Cheques
2	It includes services, such as debit cards, credit card and Internet banking	ii	General Utility Functions
3	Banks issue traveler’s cheques to individuals for traveling outside the country	iii	Electronic Banking
4	It implies that commercial banks provide some utility services to customers by performing various functions	iv	Letter of Credit

(a)

(1) – (i) (2) – (ii) (3) – (iv) (4) – (iii)

(b)

(1) – (ii) (2) – (iii) (3) – (iv) (4) – (i)

(c)

(1) – (iv) (2) – (iii) (3) – (i) (4) – (ii)

(d)

(1) – (i) (2) – (ii) (3) – (iii) (4) – (iv)

If there is an imbalance in the trade balance (more imports than exports), it can be reduced by

(a)

decreasing customs duties

(b)

increasing export duties

(c)

stimulating exports

(d)

stimulating imports

Benefits of FDI include, theoretically

(a)

Boost in Economic Growth

(b)

Increase in the import and export of goods and services

(c)

Increased employment and skill levels

(d)

All of these

The modern theory of international trade explains the causes for …………….?

(a)

comparative cost difference

(b)

absolute cost difference

(c)

comparative cost similarities

(d)

absolute cost similarities

In the classical model of Ricardo, the direction of trade is determined by:

(a)

absolute advantage

(b)

comparative advantage

(c)

physical advantage

(d)

which way the wind blows

The Heckscher-Ohlin assumes that _______ are identical between countries

(a)

tastes and preferences

(b)

technology levels

(c)

factor endowments

(d)

both (a) and (b)

International Monetary Fund was an outcome of

(a)

Pandung Conference

(b)

Dunkel Draft

(c)

Bretton Woods Conference

(d)

Doha Conference

SAARC Agricultural Information Centre (SAle) works as a central information institution for agriculture related resources was founded on

(a)

1985

(b)

1988

(c)

1992

(d)

1998

The International Monetary Fund was established in ________.

(a)

1985

(b)

1940

(c)

1945

(d)

1918

Which of the following statements is not correct?

(a)

Both the IMF & IBRD have headquarters in Washington

(b)

Both IMF & IBRD are the Constituent organizations of United Nations Organization

(c)

IBRD is also called World Bank

(d)

India's vote share in the International Monetary Fund is 10%

Which of the following is not one of the international institutions established in the late 1940s?

(a)

The General Agreement on Tariffs and Trade (GATT)

(b)

The World Bank

(c)

The International Monetary Fund (IMF)

(d)

The World Trade Organization

The difference between total expenditure and total receipts including loans and other liabilities is called

(a)

Fiscal deficit

(b)

Budget deficit

(c)

Primary deficit

(d)

Revenue deficit

Finance Commission determines

(a)

The finances of Government of India

(b)

The resources transfer to the states

(c)

The resources transfer to the various departments

(d)

None of the above

During the past 67 years of planning, the population of India has increased from 36.1 crore in…………, to 121 crore in………..?

(a)

1951 and 2011

(b)

1981 and 2011

(c)

1991 and 2018

(d)

1971 and 2001

The following is not a characteristic of a tax.

(a)

It is a compulsory payment

(b)

Every tax involves a sacrifice by tax payer

(c)

There is a quid-pro-quo between the tax payer and the Government

(d)

Refusal to pay tax is a punishable offence.

Ecosystem is smallest unit of

(a)

Ionosphere

(b)

Lithosphere

(c)

Biosphere

(d)

Mesosphere

One of the most important market failures is caused by __________

(a)

Positive externalities

(b)

Negative externalities

(c)

Both

(d)

None of the above

_____________ is the example of negative consumption externality.

(a)

Non-smoker

(b)

Smoker

(c)

Chain smoker

(d)

Rare-smoker

Environmental Economics is the subset of economics that is concerned with the efficient allocation of _______________ resources.

(a)

economical 

(b)

environmental

(c)

natural

(d)

industrial

Find the relevant term of the following statement. “When some residents of a locality hire a private security agency to patrol their area, the other residents of the area also benefit from better security without bearing cost”

(a)

NegativeProduction Externality

(b)

Negative Consumption Externality

(c)

Positive production Externality

(d)

Positive Consumption Externality

The non-economic determinant of economic development

(a)

Natural resources

(b)

Human resource

(c)

Capital formation

(d)

Foreign trade

Who wrote the book 'The Road to Serfdom'?

(a)

Friedrich Hayek

(b)

H.R. Hicks

(c)

David Ricardo

(d)

Thomas Robert Malthus

In capitalism, the allocation of resources and distribution of rewards are done through the ____ system.

(a)

supply

(b)

demand

(c)

price

(d)

curve

The vicious circle of poverty was introduced by______

(a)

Adam smith

(b)

Nurkse

(c)

Dalton

(d)

Robbins

GNI Per Capita of $906 and below refers to ___________?

(a)

High Income Countries

(b)

Middle Income Countries

(c)

Poor Countries

(d)

Low Income Countries

Sources of secondary data are______

(a)

Published sources

(b)

Unpublished sources

(c)

Neither published nor unpublished sources

(d)

Both (a) and (b)

In the regression equation \(Y={ \beta }_{ 0 }+{ \beta }_{ 1 }{ X }_{ , }\) the X is called:

(a)

Independent variable

(b)

Dependent variable

(c)

Continuous variable

(d)

None of the above

Which is not a limitation of statistics?

(a)

Statistics is not suitable to the study of qualitative phenomenon

(b)

Statistical laws are not exact

(c)

Statistical collection should be systematic with a predetermined purpose

(d)

Statistics is only one of the methods of studying a problem

________ are further classified as nominal and rank data. Eg. Gender, Community, honesty.

(a)

Raw data

(b)

Qualitative data

(c)

Refined data

(d)

Quantitative data

The value of a correlation is reported by a researcher to be r = −0.5. Which of the following statements is correct?

(a)

The x-variable explains 25% of the variability in the y-variable

(b)

The x-variable explains −25% of the variability in the y-variable.

(c)

The x-variable explains 50% of the variability in the y-variable

(d)

The x-variable explains −50% of the variability in the y-variable.

Define ‘Economic Model'.

What do you mean by Socialism?

Give the countries which have communism.

Write the equation for Four-sector economy.

Write a note on Central Planning?

Write the formula for calculating GNP.

What is the features of GDP_MP?

What do you understand by Net Factor Income from Abroad (X-M)?

What is the main feature of rural unemployment ?

List out the assumptions of Say’s law.

What is unemployment?

What is Cyclical Unemployment?

What is Technical Unemployment?

What is consumption function?

List out the assumption of psychological Law of Consumption.

Increase in income always leads to an increase in both consumption and saving. – Explain.

What is barter?

Explain paper currency Standard.

Write the Fisher’s Extended Form of equation.

Define Commercial banks.

What is a debit card?

Differential in short – NEFT and RTGS.

What is meant by Exchange Rate?

What are the types Trade?

What is the multi fibre agreement?

Differentiate tax and fee.

What is Repudiation?

What are environmental goods? Give examples

Draw the diagram depicts the interdependence of economics and environment.

Distinguish between economic growth and development.

What do you mean by development?

What is the key difference between comprehensive and partial plan?

What do you mean by Inferential Statistics?

Define Correlation.

Comment – “Statistics and Education”

Distinguish between Capitalism and Globalism.

Outline major demerits of capitalism.

Explain briefly NNP at factor cost.

Compare and contrast different measures of GDP calculations.

According to classical theory of employment, how wage reduction solve the problem of unemployment diagramatically explain.

What are the economic costs of unemployment?

Differentiate autonomous and induced investment.

List of uses of multiplier.

Explain disinflation.

What is money? Explain the three functions that money performs. Which one is the primary function of money?

Give a brief note on NBFI.

Discuss the Primary Functions.

State the objectives of Foreign Direct Investment.

List out the limitations of Modern Theory of International Trade?

What are the Determinants of Exchange Rates?

What are trade blocks?

What are the major achievements of WTO?

Describe Canons of Taxation.

What are the main sources of internal public debt?

What are the causes of water pollution?

Draw the classification of sources of e-waster.

How would you break the vicious circle of poverty?

List the economic and non-economic determinants of economic development.

Mention the uses of Regression Analysis.

State the types of correction on the basis of number of variables studied.

Discuss the features of Capitalist economy.

Consider the following are the only transactions take place in an economy:
(i) Industry A imports goods worth Rs. 100. It sells goods worth Rs. 400 to industry B, goods worth Rs. 200 to industry C, and goods worth Rs. 1,000 for private consumption.
(ii) Industry B sells goods worth Rs. 500 to industry C and goods worth Rs. 800 for private consumption.
(iii) Industry C sells goods worth Rs. 600 to private consumption. and exports goods, valued at Rs. 500.
(iv) Depreciation cost during the year amounts to Rs. 100,
(v) Government realises taxes of the value of Rs. 100. Calculate the following with the help of net value added method from the data given above
(a) GNP_MP
(b) GNP_FC
(c) NNP_MP and
(d) NNP_FC

In each of the following scenarios, classify the individual as frictionally, structurally, or cyclically unemployed. Explain your classification.
(a) There has been a general economic slow down. Because of weak demand, Kumar has lost his portering job at the railway station.
(b) Sathish, a newly qualified dental graduate, is looking for a place to set up practice.
(c) Latha is thrown out of work by the introduction of a more mechanized production process.
(d) Devi, a computer programmer with a large bank, quit her job two months ago in search of a better-paid programming position. She is still looking.

What are the differences between MEC and MEI.

Derive the value of the multiplier assuming the basic form of the consumption function as C = a + bY where "a" is autonomous consumption and "b" is the marginal propensity to consume. You may assume a two-sector economy.

What are the objectives of ARDC? Explain.

Elaborate various Gains from International Trade?

What are the advantages of GST?

Explain non-economic factors determining development?

Find the Pearsonian correlation coefficient between sales (in thousand units) and expenses (in thousand rupees) of the following 10 firms:

Firm	1	2	3	4	5	6	7	8	9	10
Sales:	50	50	55	60	65	65	65	60	60	50
Expenses:	11	13	14	16	16	15	15	14	13	13