Tag: macroeconomic theories

Questions Related to macroeconomic theories

Change in stock is negative when:

economics basic concepts of national income macroeconomic theories some basic concepts of macroeconomics introduction to macroeconomics

  1. Closing stock $>$ Opening stock

  2. Closing stock $<$ Opening stock

  3. Closing stock $= 0$

  4. Opening stock $= 0$

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Correct Option: B

For which of the following States has Centre appointed interlocutors?

economics basic concepts of national income macroeconomic theories some basic concepts of macroeconomics introduction to macroeconomics

  1. HP

  2. J & K

  3. Nagaland

  4. Manipur

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Correct Option: B

Induced investment is made without reference to profit.

economics basic concepts of national income macroeconomic theories some basic concepts of macroeconomics introduction to macroeconomics

  1. True

  2. False

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Correct Option: B

Capital output ratio refers to __________________.

economics basic concepts of national income macroeconomic theories some basic concepts of macroeconomics introduction to macroeconomics

  1. units of capital required to produce consumer goods

  2. units of capital required to produce output

  3. amount of capital required to instal a capital asset

  4. All the above

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Correct Option: B
Explanation:

A frequently used tool that explains the relationship between the level of investment made in the economy and the consequent increase in GDP is the capital-output ratio. The concept of the capital-output ratio expresses the relationship between the value of capital invested and the value of output.

Capital output ratio is the amount of capital needed to produce one unit of output. For example, suppose that investment in an economy, investment is 32% (of GDP), and the economic growth corresponding to this level of investment is 8%.

Here, a Rs 32 investment produces an output of Rs 8. Capital output ratio is 32/8 or 4. In other words, to produce one unit of output, 4 unit of capital is needed. But don’t forget that the Rs 32 invested in the form of machinery will remain there for around ten or twelve years. Such machinery will be giving Rs 1 output in every year.

Hence, B is the correct option.

"BCSBI" stands for _________________.

economics basic concepts of national income macroeconomic theories some basic concepts of macroeconomics introduction to macroeconomics

  1. Banking Codes and Standards Boards of India

  2. Board Code for Standards in Branches

  3. Board Code for Standards in Banking

  4. None of the above

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Correct Option: A
Explanation:

The Banking Codes and Standards Board of India (BCSBI) is an independent banking industry watchdog that protects consumers of banking services in India. The board oversee compliance with the "Code of Bank's Commitment to Customers".

Keynes advocated unbalanced budget approach.

economics basic concepts of national income macroeconomic theories some basic concepts of macroeconomics introduction to macroeconomics

  1. True

  2. False

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Correct Option: A

The book General Theory of Employment Interest and Money was written by _________.

economics basic concepts of national income macroeconomic theories some basic concepts of macroeconomics introduction to macroeconomics

  1. David Ricardo

  2. Adam Smith

  3. J.M. Keynes

  4. Alfred Marshall

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Correct Option: C

_________ supported the principle of balance budget.

economics basic concepts of national income macroeconomic theories some basic concepts of macroeconomics introduction to macroeconomics

  1. Adam Smith

  2. Ricardo

  3. Alfred Marchall

  4. keynes

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Correct Option: A

Autonomous consumption is income elastic.

economics basic concepts of national income macroeconomic theories some basic concepts of macroeconomics introduction to macroeconomics

  1. True

  2. False

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Correct Option: B

At break even point, consumption  (C) is equal to Income (Y) .

economics basic concepts of national income macroeconomic theories some basic concepts of macroeconomics introduction to macroeconomics

  1. True

  2. False

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Correct Option: A