9 Multiple Choice Questions (MCQs) with Answer on “Macroeconomics”

(a) The book “General Theory of Employment, Interest and Money” was written by:

(i) Alfred Marshall

(ii) Prof. J. M. Keynes

(ii) Bounding

(iv) David Ricardo

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(b) When income increases, consumption;

(i) Increases

(ii) Decreases

(iii) Remains constant

(iv) None of these

(c) GDP_Mp is equal to:

(i) GDP_pc + Net indirect tax

(ii) NDP_rc + Indirect Tax

(iii) GDP_pc – Subsidies

(iv) None of these

(d) At the equilibrium level of income:

(i) S = 1

(ii) S > 1

(iii) S < 1

(iv) None of these

(e) The value of APC before the break-even level of income is,

(i) > 1.

(ii) <1

(iii) = 1

(iv) = 0

(f) At the break-even level of income:

(i) Income = consumption

(ii) Income < consumption

(iii) Income > consumption

(iv) None of above

(g) GNP_Mp equal to:

(i) GDP_Mp + Net factor income from abroad

(ii) GDP_Mp – Net indirect taxes

(iii) NNP_fc + Net factor income from abroad

(iv) None of these

(h) Net indirect tax is equal to:

(i) GNP_Mp – GDP_Mp

(ii) Indirect tax Subsidy

(iii) Indirect tax + Subsidy

(iv) None of these

(i) NNP_Mp is equal to:

(i) GDP_Mp + Net factor income from abroad

(ii) GNP_Mp – Depreciation

(iii) GNP_Mp + Depreciation

(iv) None of these

Answers:

(a) Prof. J. M. Keynes (b) increases (c) GDP_FC + Net indirect taxes (d) S = 1 (e) > 1 (f) income = consumption (g) GDP_Mp + Net factor income from abroad (h) Indirect tax – Subsidy (i) GNP_MP – Depreciation