Macro Economic Theory Mcqs

S.Y B.COM

SEMESTER - 3

MACRO ECONOMIC THEORY

(MET)

MCQs - UNIT 1

1. Due to imports there is _____________ in circular flow.  

A. contraction  

B. expansion

C. nothing  

D. improvement  

2. When exports are greater than imports it show _____________ situations of BOP.  

A. deficit trade  

B. surplus trade  

C. equilibrium  

D. none  

3. Which of the following is injection?  

A. taxes  

B. exports  

C. saving  

D. imports  

4. Macro economies is also known as __________ . 

A. theory of income and employment  

B. theory of economic growth  

C. theory of general price and inflation  

D. theory of distribution  

5. Macro economies deals with ___________ . 

A. individual study  

B. individual income study  

C. aggregate study  

D. price determination  

6. In order to maintain price stability, classical economists advocated _____________ .

A. stability of money DD

B. stability of money supply

C. stability of interest

D. stability of saving

7. Which policy is meant for control of money supply?  

A. fiscal policy  

B. monetary policy  

C. both  

D. none  

8. When there is excess money supply in economy it will create________ . 

A. more saving  

B. more investment  

C. inflation  

D. deflation  

9. When there is shortage of money supply in economy, it will create  

A. lack of DD  

B. deflation  

C. both (a) & (b)  

D. none  

10. Fiscal policy is meant for?   

A. to control money supply  

B. to control interest rate  

C. to manage tax, govt. expense & public borrowings  

D. to control foreign currency  

11. Which is the traditional weapon to control money supply from following?

A. bank rate policy   

B. moral suasion   

C. control on consumer credit  

D. margin requirement  

12. Simultaneous situation of unemployment & inflation is called _________ .

A. inflation  

B. hyper inflation  

C. slow down  

D. stagflation  

13. To manage foreign trade which fiscal policy is used?  

A. foreign exchange rate

B. EXIM policy  

C. RBI policy  

D. open market operation  

14. Foreign exchange rare is determined by  

A. DD for foreign exchange  

B. SS of foreign exchange  

C. level of export & import  

D. all  

15. The rate at which home currency exchanged with foreign currency is known as?  

A. domestic rate  

B. international rate  

C. foreign exchange rate  

D. foreign trade rate  

16. Gap between actual GDP & potential GDP is called ___________ . 

A. unemployment  

B. inflation  

C. GDP gap

D. GDP margin  

17. In capitalist economy majority prices are decided by?  

A. market system  

B. price mechanism  

C. Government  

D. both (a) & (b)  

18. Which of the following is not objective of macro economics __________ . 

A. high level of output  

B. full employment  

C. population control  

D. price stability 

19. Economy without foreign trade is called?  

A. free economy  

B. barter economy  

C. open economy  

D. closed economy  

20. Why taxes are considered as withdrawals?  

A. they reduced foreign trade  

B. they reduce income of people   

C. they reduce size of circular flow  

D. they increase income for government  

21. Which of the following are withdrawals?  

A. saving

B. imports  

C. investment  

D. both (a) & (b)  

22. "Withdrawals" are also known as?

A. leakage  

B. injection  

C. stock

D. none  

23. Why government expenditure are considered as 'injection'?

A. they increase size of circular flow  

B. they increase income of government  

C. they increase income for producer only 

D. they reduce size of circular flow  

24. Macro economies was named by _________ . 

A. Adam Smith  

B. David Ricardo  

C. Rangar Frisch  

D. J M Keynes  

25. BOP is the systematic records of all __________.  

A. political transaction  

B. social transaction 

C. economic transaction  

D. religious transaction  

For More Detail Contact Us And Follow On Study For Buddies

Thank You