Question 1

Who first introduced the concept of circular flow ofincome?

Accepted Answer

A) william petty 
B) adam smith 
C) david ricardo 
D) fancois quesnay 
A) william petty 
B) adam smith 
C) david ricardo 
D) fancois quesnay D

Question 2

GDP Deflator is also called as:

Accepted Answer

A) implicit cost deflator 
B) gdp at factor cost 
C) implicit wage deflator 
D) implicit price deflator 
A) implicit cost deflator 
B) gdp at factor cost 
C) implicit wage deflator 
D) implicit price deflator D

Question 3

Value added at each stage of production means:

Accepted Answer

A) value of output minus value of input 
B) total value added by that stage 
C) total value produced at that stage 
D) all of the above 
A) value of output minus value of input 
B) total value added by that stage 
C) total value produced at that stage 
D) all of the above A

Question 4

Which one of the following is roughly equal to national income?

Accepted Answer

A) gdp 
B) nnp 
C) gnp 
D) sdp 
A) gdp 
B) nnp 
C) gnp 
D) sdp

Question 5

Investment is reckoned by which method for computing GDP:

Accepted Answer

A) income method 
B) productmethod 
C) expenditure method 
D) value added method 
A) income method 
B) productmethod 
C) expenditure method 
D) value added method

Question 6

Why do not the sale or purchase of used goods are not included in the GDP?

Accepted Answer

A) used goods have only limited life 
B) used goods are not fresh production 
C) used goods are included in the previous gdp calculations 
D) all the above 
A) used goods have only limited life 
B) used goods are not fresh production 
C) used goods are included in the previous gdp calculations 
D) all the above

Question 7

Who among the following pioneered the first real estimate of national income?

Accepted Answer

A) adam smith 
B) david ricardo 
C) william petty 
D) none of the above 
A) adam smith 
B) david ricardo 
C) william petty 
D) none of the above

Question 8

Remittances made by NRIs to India in the context of national income accounting is called as

Accepted Answer

A) remittance income 
B) nri income 
C) factor payments 
D) all of the above 
A) remittance income 
B) nri income 
C) factor payments 
D) all of the above

Question 9

Disposable Income does not include:

Accepted Answer

A) excise dutypaid 
B) income tax 
C) customs dutypaid 
D) none of theabove 
A) excise dutypaid 
B) income tax 
C) customs dutypaid 
D) none of theabove

Question 10

Inventories are unsold goods produced by a firm, then why do they are included in GDP?

Accepted Answer

A) inventories represent value 
B) inventories add to the stock of the firm 
C) they are purchases by the firm itself 
D) all the above 
A) inventories represent value 
B) inventories add to the stock of the firm 
C) they are purchases by the firm itself 
D) all the above

Question 11

A substantial increase in the rate of interest can cause:

Accepted Answer

A) increase in savings 
B) reduce propensity to consume 
C) all the above 
D) none of the above 
A) increase in savings 
B) reduce propensity to consume 
C) all the above 
D) none of the above

Question 12

Which one in the following is a stock variable?

Accepted Answer

A) income 
B) investment 
C) capital 
D) fiscal deficit 
A) income 
B) investment 
C) capital 
D) fiscal deficit

Question 13

Starting point of Keynesian economics is:

Accepted Answer

A) effective demand 
B) individual demand 
C) aggregate demand 
D) market demand 
A) effective demand 
B) individual demand 
C) aggregate demand 
D) market demand

Question 14

Which one of the following includes 'income ofresidents'?

Accepted Answer

A) gdp 
B) nnp 
C) sdp 
D) none of the above 
A) gdp 
B) nnp 
C) sdp 
D) none of the above

Question 15

Which one in the following is a flow variable?

Accepted Answer

A) debt 
B) wealth 
C) unemployment 
D) gdp 
A) debt 
B) wealth 
C) unemployment 
D) gdp

Question 16

The value of 'intermediate goods' are excluded from GDP calculation because:

Accepted Answer

A) it will increase the gdp unduly 
B) it results in multiple counting of same value 
C) intermediate goods are not important 
D) all the above 
A) it will increase the gdp unduly 
B) it results in multiple counting of same value 
C) intermediate goods are not important 
D) all the above

Question 17

Keynesian three sector model consist of:

Accepted Answer

A) business sector, service sector, externalsector 
B) households, business, government 
C) governmentsector, open sector,service sector 
D) governmentsector, private sector, open sector 
A) business sector, service sector, externalsector 
B) households, business, government 
C) governmentsector, open sector,service sector 
D) governmentsector, private sector, open sector

Question 18

Functional relationship between saving and disposable income is:

Accepted Answer

A) savingfunction 
B) income function 
C) consumption function 
D) investment function 
A) savingfunction 
B) income function 
C) consumption function 
D) investment function

Question 19

As the value of MPC increases, the value ofmultiplier:

Accepted Answer

A) decreases 
B) increases 
C) constant 
D) cannot 
A) decreases 
B) increases 
C) constant 
D) cannot

Question 20

Imputed value of good is added to the GDP because:

Accepted Answer

A) they indeed represent value 
B) there is no market price for that 
C) they increase consumption 
D) none of the above 
A) they indeed represent value 
B) there is no market price for that 
C) they increase consumption 
D) none of the above

Who first introduced the concept of circular flow ofincome?

GDP Deflator is also called as:

Value added at each stage of production means:

Which one of the following is roughly equal to national income?

Investment is reckoned by which method for computing GDP:

Why do not the sale or purchase of used goods are not included in the GDP?

Who among the following pioneered the first real estimate of national income?

Remittances made by NRIs to India in the context of national income accounting is called as

Disposable Income does not include:

Inventories are unsold goods produced by a firm, then why do they are included in GDP?

A substantial increase in the rate of interest can cause:

Which one in the following is a stock variable?

Starting point of Keynesian economics is:

Which one of the following includes 'income ofresidents'?

Which one in the following is a flow variable?

The value of 'intermediate goods' are excluded from GDP calculation because:

Keynesian three sector model consist of:

Functional relationship between saving and disposable income is:

As the value of MPC increases, the value ofmultiplier:

Imputed value of good is added to the GDP because:

Classical Economic Theory

Economics Model and Is-Lm Analysis

Macro Economics Terminology and Concepts

Keynesian Economics and Related Concepts

Economic Theory and Methodology: Exploring the Fundamentals of Economics

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Exam 5: National Income Accounting and Keynesian Economics

Who first introduced the concept of circular flow ofincome?

GDP Deflator is also called as:

Value added at each stage of production means:

Which one of the following is roughly equal to national income?

Investment is reckoned by which method for computing GDP:

Why do not the sale or purchase of used goods are not included in the GDP?

Who among the following pioneered the first real estimate of national income?

Remittances made by NRIs to India in the context of national income accounting is called as

Disposable Income does not include:

Inventories are unsold goods produced by a firm, then why do they are included in GDP?

A substantial increase in the rate of interest can cause:

Which one in the following is a stock variable?

Starting point of Keynesian economics is:

Which one of the following includes 'income ofresidents'?

Which one in the following is a flow variable?

The value of 'intermediate goods' are excluded from GDP calculation because:

Keynesian three sector model consist of:

Functional relationship between saving and disposable income is:

As the value of MPC increases, the value ofmultiplier:

Imputed value of good is added to the GDP because:

Classical Economic Theory

Economics Model and Is-Lm Analysis

Macro Economics Terminology and Concepts

Keynesian Economics and Related Concepts

Economic Theory and Methodology: Exploring the Fundamentals of Economics

Filters