Tag: economics

Questions Related to economics

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

In developing countries the marginal propensity to consume is ______ than underdeveloped countries.

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

  1. more

  2. less

  3. constant

  4. fluctuating

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Correct Option: A

Net exports will be positive if ______.

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

  1. import > export

  2. export > import

  3. export = import

  4. export = zero

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Correct Option: B
Explanation:

Exports refer to the goods and services sold by domestic traders to foreign traders; the revenue thus generated is foreign trade revenue. Imports, on the other hand, refers to the purchases made by the domestic traders from foreign traders; which requires foreign trade payments.
Net exports will be positive when revenue from foreign trade is higher than payments, i.e., exports greater than imports.

Investments made by the government is _____________ investment.

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

  1. induced

  2. autonomous

  3. gross

  4. unplanned

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Correct Option: B

Expected rate of return on investment is called_______ of capital.

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

  1. marginal efficiency

  2. average efficiency

  3. opportunity cost

  4. rate of interest

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Correct Option: A
Explanation:

Marginal efficiency of capital refers to the rate of return that is expected from an additional unit of investment made or capital utilised. The marginal efficiency of capital, thus, precisely represents the expected rate of return on investment.

_______ investment refers to the investment made without reference to income or profit.

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

  1. Induced

  2. Autonomous

  3. Inventory

  4. Gross

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Correct Option: B
Explanation:

Autonomous investment is done without taking into account the income of the investor or the profit that can be generated from investment. This type of investment is majorly done with the objective of public welfare or infrastructure development by the government or public sector.