Planned economy is also known as _________.

(a)

Capitalist Economy

(b)

Socialist Economy

(c)

Mixed Economy

(d)

All the above

Example for Mixed Economy ________.

(a)

India

(b)

France

(c)

China

(d)

Both 'a' and 'b'

Combination of both capitalism and socialism ________.

(a)

Capitalist Economy

(b)

Traditional Economy

(c)

Mixed Economy

(d)

Socialist Economy

_________ sector sells the entire output to house holds.

(a)

Firm

(b)

House hold

(c)

Government

(d)

Foreign trade

Identify the economic system where only public ownership of production exists.

(a)

Capitalistic economy

(b)

Socialistic economy

(c)

Globalistic economy

(d)

Mixed economy

The growth and development of an economy and the factors determining them could be understood only through________

(a)

macro analysis

(b)

micro analysis

(c)

positive analysis

(d)

rational analysis

Identify which is not a part of classification of economy based on Level of National Income

(a)

Foreign Income Economies

(b)

Low Income Economies

(c)

Middle Income Economies

(d)

High Income Economies

What is considered as the heart of any capitalistic economy?

(a)

Sales mechanism

(b)

Price mechanism

(c)

Demand mechanism

(d)

Exchange mechanism

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

Find the odd one out

(a)

C + I

(b)

C + I + G + (X – M)

(c)

C + I + G

(d)

(X – M)

Given the chart, find the missing system of economy

(a)

Pure Mixed

(b)

Capitalist Learning

(c)

Mixed Learning

(d)

Marxis

Assertion: The means of production in a capitalistic economy are publicly owned.
Reason: Manufacturers produce goods and services with profit motive

(a)

Both A and R are true and R is the correct explanation of A.

(b)

Both A and R are true but R is not the correct explanation of A.

(c)

A is true but R is false

(d)

A is false but R is true

GDP stands for

(a)

Gross Domestic Product

(b)

Gross Direct Product

(c)

Gross Domestic Provident

(d)

Gross Derived Product

National Income provides a comprehensive measure of _________ activities of a nation.

(a)

Economic activity

(b)

Production activity

(c)

Consumption activity

(d)

Industrial activity

Nobel laureate Smimon Kuznets introduced the first concept of _________

(a)

Percapita Income

(b)

National Income

(c)

Domestic Income

(d)

Personal Income

GNP includes __________ types of final goods and services.

(a)

Two

(b)

Four

(c)

Five

(d)

Three

NNP at factor cost = NNP at Market Price - ________ + Subsidies.

(a)

Direct taxes

(b)

Canons of taxes

(c)

Indirect taxes

(d)

None of these

_________ reflects the economic welfare of the country.

(a)

Personal Income

(b)

Percapita Income

(c)

Disposal Income

(d)

All of these

_______ are excluded from national income.

(a)

Capital Gains

(b)

Social Accounting

(c)

Statistical Problems

(d)

None of these

The per capita income of an economy can be calculated by __________.

(a)

Dividing GDP by population

(b)

Dividing GNP by population

(c)

Multiplying GNP by population

(d)

Dividing GNP by number of people employed

The total money value of final goods and services produced in the country excluding depreciation is called _________.

(a)

NDP

(b)

GDP

(c)

NNP

(d)

GNP

The income method of calculating national income includes the income of the _________

(a)

farmers only

(b)

businessmen only

(c)

service sector only

(d)

factors of production

In _______ method, the measures of GDP are calculated by adding all the expenditures made in the economy.

(a)

Income

(b)

Expenditure

(c)

Product

(d)

All the above

The value of net national product will be more than the value of net domestic product, if ________.

(a)

imports exceed exports

(b)

exports exceed imports

(c)

exports equal imports

(d)

none of the above

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

(a)

Remittance Income

(b)

NRI Income

(c)

Factor Payments

(d)

All of the above

The difference between the income received from abroad for rendering factor services by the normal residents of the country to the rest of the world and income paid for the factor services rendered by nonresidents in the domestic territory of a country is known as __________.

(a)

Net Factor Income from Abroad

(b)

Capital Consumption Allowances

(c)

Depreciation

(d)

None of these

That part of personal income which is actually available to households for consumption and saving is called________

(a)

National Disposable Income

(b)

Personal Disposable Income

(c)

Personal Income

(d)

None

Full employment as "that level of employment at which any further increase in spending would resort in an inflationary spiral of wages and prices" who quote this above concept.

(a)

J.M. Keynes

(b)

Lerner

(c)

J.B. Say

(d)

All the above

A person receives his income from ______________

(a)

production

(b)

purchase

(c)

sales

(d)

None of the above

Wages and prices are _____________

(a)

flexible

(b)

related

(c)

homogeneous

(d)

none of the above

Say's law of market is the core of the __________ theory of employment.

(a)

classical

(b)

economical

(c)

environmental

(d)

proportional

Based on Keynesianism __________ is vice.

(a)

Saving

(b)

Production

(c)

Consumption

(d)

None of these

Classicism theory is based on _________ equilibrium.

(a)

Very short run

(b)

Short run

(c)

Long run

(d)

very long run

In the linear consumption function C = a + bY, coefficient ‘a’ denotes

(a)

MPC

(b)

APC

(c)

Autonomous consumption

(d)

Induced consumption

Which of the following is correct?

(a)

1+ MPS = MPC

(b)

1- MPC = MPS

(c)

MPC + MPS > 1

(d)

MPC + MPS < 1

The marginal propensity to consume is:

(a)

increasing if the marginal propensity to save is increasing

(b)

the proportion of total disposable income that the average family consumes

(c)

the change in consumer spending divided by the change in aggregate disposable income

(d)

the change in consumer spending minus the change in aggregate disposable income

When prices are raised drastically(rapidly) we call it

(a)

Galloping inflation

(b)

Mild inflation

(c)

Hyper Inflation

(d)

Deflation

Barter system was introduced by________

(a)

Mesopetamia tribes

(b)

Babylonian's

(c)

Both 'a' and 'b'

(d)

None of the above

The exchange of one good for another without the use of money is called______

(a)

Supply of Money

(b)

Inflation

(c)

Deflation

(d)

Barter

_____ is a monetary arrangement in which a country’s Government allows conversion of its currency into fixed amount of silver.

(a)

The Gold Standard

(b)

The silver standard

(c)

The Metallic standard

(d)

None of the above

Which of following country do not to accept a unique currency symbol?

(a)

China

(b)

America

(c)

Britain

(d)

Japan

Expand the CDR.

(a)

Cash Deposit Ratio (CDR)

(b)

Currency Digital Ratio (CDR)

(c)

Currency Deposit Ratio (CDR)

(d)

Currency Deposit Ration (CDR)

Given the equation, M = KPY, which is wrongly denoted?

(a)

M is the quantity of money

(b)

Y is the aggregate real income of the community

(c)

K represents the fraction of the real income which the public desires to hold in the form of money

(d)

None of the above

Scarcity induced inflation has happened in Venezula of the year ______.

(a)

2017

(b)

2018

(c)

2016

(d)

2008

Assertion: Reduced capital accumulation may discourage entrepreneurs and business men from taking business risk.
Reason: With reduced capital accumulation, the investment will suffer a serious set-back which may have an adverse effect on the volume of production in the country.

(a)

Both (A) and (R) are true and (R) is the correct explanation of (A)

(b)

Both (A) and (R) are true, but (R) is not the correct explanation of (A)

(c)

(A) is true, but (R) is false

(d)

(A) is false, but (R) is true

In MV=PT, if M doubles and V and T remain constant, then P will:

(a)

Double

(b)

1/2

(c)

1

(d)

4

Which of the following are costs of inflation?
I. Inflation weakens the creation of credit and capital markets.
II. Inflation distorts business behavior, especially investment behavior.
III. Inflation increases the prices of foreign goods relative to domestic goods.
IV. Inflation imposes a tax on the holders of money.

(a)

I and II only

(b)

III and IV only

(c)

I, II and IV only

(d)

I, II and III only

RBI will act as the banker to the ___________

(a)

Private concern

(b)

Society

(c)

Government of India

(d)

Both 'a' and 'b'

________ is the monetary authority of the country.

(a)

Central bank

(b)

RBI

(c)

SBI

(d)

Both 'a' and 'b'

Find the suitable match: Commercial banks act as agents of customers by performing various functions.

(a)

Primary Function

(b)

Secondary Function

(c)

Other Function

(d)

None of the above