Past Papers Principle of Macro Economics


Subject: Principle of Macro Economics

Time Allowed: 15 Minutes

Max Marks: 10

NOTE: Attempt this Paper on this Question Sheet only. Please encircle the correct option. Division of marks is given in front of each question. This Paper will be collected back after expiry of time limit mentioned above.


Part-I Encircle the right answer, cutting and overwriting are not allowed. (10)

The largest part of national income goes to?

(a) Consumption                              (b) Government expenditures

(c) Net Exports                                  (d) Investment

Consumption is a function of:

(a) Savings                                          (b) Interest rate

(c) Income                                          (d) Expenditures

lf money is not used to exchange goods, it is called:

(a) Currency                                       (b) Barter

(c) Free Trade                                    (d) Black market

Intermediate goods are not included to calculate the final output because”

(a) They don’t have value            (b) They have unknown value

(c) Their value is included in final goods so they are not added to avoid the problem of double counting

(d) None of the above

Which of the following is not a function of money?

(a) Hedge against inflation           (b) Medium of exchange

(c) Unit of account                           (d) None of these

The policy adopted by central bank to control the credit is called?

(a) Fiscal policy                                  (b) Monetary policy

(c) Commercial policy                     (d) Industrial policy

Trade balance is __________.

(a) Imports — Exports                   (b) Cost — Revenue

(c) Exports — Imports                    (d) None of above

Which of the following types of unemployment is more problematic?

(a) Cyclical unemployment          (b) Structural unemployment

(c) Seasonal unemployment       (d) Disguised unemployment

The income which a person can use according to its will is:

(a) Per capita income                     (b) Net income

(c) Personal income                        (d) Disposable income

Real GDP = ________________

(a) National GDP/Real GDP          (b) Nominal GDP/GDP Deflator

(c) GDP Deflator/Nominal GDP  (d) None of above