Tag: economics

Quizzes (361) Questions (3598)

Questions Related to economics

Multiple choice nutrition and health status introduction to tamil nadu economy tamil nadu economy food security and nutrition economics

Pradhan Mantri Gram Sadak Yojana was aimed at improving road connectivity in _________.

  1. urban area

  2. rural area

  3. both areas

  4. none of above
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Pradhan Mantri Gram Sadak Yojana was aimed at improving road connectivity in rural areas. This program is launched with the objective of providing road to all unconnected villages so that production mechanism in these areas rise. Constructing all weather road connectivity is included in this program.

Multiple choice nutrition and health status introduction to tamil nadu economy tamil nadu economy food security and nutrition economics

Headquarters of southern railway is at ________.

  1. Chennai

  2. Hyderabad

  3. Thiruvananthapuram

  4. Bangalore
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Southern railways are one of the 17 railway zones of India. Its headquarters are located in Chennai of Tamilnadu state.  It covers the states of Tamil Nadu, Kerala, Puducherry and small portions of Andhra Pradesh and Karnataka. 

Multiple choice national income identity for open economy open economy macroeconomics determination of income and employment economics

Imports of goods and services raises the _______ of foreign exchange.

  1. supply

  2. demand

  3. both (a) and (b)

  4. neither (a) nor (b)
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Imports of goods and services raises the demand of foreign exchange. It s a component of the demand of foreign exchange because payments for imports are made in foreign exchange only.

Multiple choice national income identity for open economy open economy macroeconomics determination of income and employment economics

The ratio of the total increment in equilibrium value of final goods output to the initial increment in autonomous expenditure is called the _____________.

  1. income multiplier

  2. output multiplier

  3. employment multiplier

  4. money supply multiplier
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

The output multiplier represents the ratio of the change in equilibrium output to the change in autonomous expenditure. It measures how much total output increases for a given increase in spending.

Multiple choice national income identity for open economy open economy macroeconomics determination of income and employment economics

Coefficient of correlation will be always ______________.

  1. More than 0

  2. More than-1

  3. Less than-1

  4. Between-1 and + 1
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

The Pearson correlation coefficient, denoted by r, measures the strength and direction of a linear relationship between two variables. Its mathematical range is strictly defined as being between -1 and +1 inclusive.

Multiple choice national income identity for open economy open economy macroeconomics determination of income and employment economics

An economy which has trade relation with rest of the world is called an _______.

  1. open economy

  2. closed economy

  3. mixed economy

  4. under developed
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

An open economy is one that operates a domestic sector and an international (foreign) sector and is interdependent. It is open to international trade. The economy will usually consist of 4 sectors, firms households, government and foreign sector when the economy is open.

Multiple choice national income identity for open economy open economy macroeconomics determination of income and employment economics

The aggregate demand in an economy will ____________, if the government expenditure rises.

  1. increase

  2. decrease

  3. remain unchanged

  4. either B or C
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Aggregate demand is the total demand for goods and services in an economy. Since government expenditure is a component of aggregate demand (AD = C + I + G + NX), an increase in government spending directly increases the total aggregate demand.

Multiple choice national income identity for open economy open economy macroeconomics determination of income and employment economics

The ____________, states, that if all the individuals in the economy increase the proportion of income they save, the total value of savings in the economy will
not increase, rather it would decrease or remain unchanged.

  1. paradox of savings

  2. paradox of income function

  3. paradox of thrift

  4. none of the above
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

The paradox of thrift is a concept in Keynesian economics which states that while individual saving is a virtue, if everyone tries to save more during a recession, aggregate demand falls, leading to lower income and ultimately lower total savings.

Multiple choice national income identity for open economy open economy macroeconomics determination of income and employment economics

The critical elements of macro-economic environment are:
I. Economic system
II. Economic legislation
III. Economic Planning
IV. Economic Policy Statements
Of these:

  1. I and II are correct

  2. II and IV are correct

  3. I, II and III are correct

  4. All are correct
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

For an economy to run smoothly and maintain order, there has to be an economic system that is governed by legislation, and constant planning  is undertaken in order to add new and review existing policies to further develop the economy.