Economics Mock Quiz - 8

This quiz contains questions from the following topics of Macroeconomics NCERT book.

C2: National Income Accounting
C3: Money and Banking
C4: Income Determination
C5: Govt Budget and the Economy
C6: Open Economy Macroeconomics

Economics

What is the main purpose of using 'Real GDP' instead of 'Nominal GDP'?

A) To measure GDP using current market prices

B) To adjust GDP for inflation and price changes

C) To focus solely on the GDP from real estate

D) To calculate GDP based on predicted future prices

None

Economics

The 'Factor Income Approach' to calculating GDP includes which of the following?

A) Only corporate profits

B) Wages, rents, interest, and profits

C) Government spending and investments

D) Exports minus imports

None

Economics

In the context of national income, what does 'Transfer Payments' refer to?

A) Payments for purchasing international goods

B) Payments made by the government to individuals without any goods or services in return

C) The process of transferring funds from savings to investments

D) Payments made by businesses to foreign entities

None

Economics

What is the purpose of a 'Reverse Repo Rate'?

A) The rate for long-term loans by the central bank.

B) The rate at which the central bank absorbs liquidity from the banks.

C) The standard interest rate for consumer loans.

D) The rate at which banks lend to each other.

None

Economics

What does 'Fiscal Policy' primarily focus on?

A) Regulating the stock market.

B) Controlling the money supply.

C) Government spending and taxation policies.

D) Setting interest rates for loans.

None

Economics

What is the primary goal of 'Monetary Policy'?

A) To regulate stock market prices.

B) To ensure high returns on investments.

C) To control the supply of money and maintain price stability.

D) To manage the country’s external trade.

None

Economics

Which of the following best defines autonomous consumption?

A) Consumption that changes with income

B) Consumption that does not change with income

C) The total consumption in an economy

D) Government-directed consumption

None

Economics

What is the formula for aggregate demand in an economy without a government?

A) AD = C + I + G

B) AD = C + I

C) AD = C + G

D) AD = C + S

None

Economics

What does the Keynesian consumption function typically imply?

A) Consumption is inversely related to income

B) Consumption is constant regardless of income

C) Consumption increases with an increase in income, but by a smaller proportion

D) Consumption decreases as income increases

None

10.

Economics

What does the term 'fiscal consolidation' refer to?

a) Expanding the fiscal deficit

b) Reducing the fiscal deficit and public debt

c) Increasing government spending

d) Privatizing public sector units

None

11.

Economics

What is the key focus of the Twelfth Five-Year Plan in India?

a) Military advancement

b) Industrial revolution

c) Inclusive growth and sustainable development

d) Privatization of public sector

None

12.

Economics

Which of the following is a feature of indirect taxes?

a) Charged directly on income

b) Levied on goods and services

c) Progressive in nature

d) Applied only to individuals

None

13.

Economics

What is the 'J-curve effect' in the context of a currency devaluation?

A) A rapid improvement in the trade balance following devaluation

B) An initial deterioration in the trade balance followed by improvement

C) A long-term decline in the trade balance

D) No change in the trade balance

None

14.

Economics

What does 'capital mobility' refer to in an open economy?

A) The movement of goods across borders

B) The ability of labor to move between countries

C) The ease with which capital can move across international borders

D) The stability of a country's currency

None

15.

Economics

What is a 'tariff' in the context of international trade?

A) A quota on the quantity of imports

B) A subsidy provided to domestic industries

C) A tax imposed on imported goods

D) A regulation on export prices

None

Economics Mock Quiz – 8