MCQs
Total Questions : 150
| Page 15 of 15 pages
Answer: Option A. -> $\text"Gross National Product"/\text"Total Population"$
Answer: (a)
Per capita income, more simply known as income per person, is the mean income within an economic aggregate such as a country or city.
It is calculated by taking a measure of all sources of income in the aggregate (such as GDP or Gross national income) and dividing it by the total population.
Answer: (a)
Per capita income, more simply known as income per person, is the mean income within an economic aggregate such as a country or city.
It is calculated by taking a measure of all sources of income in the aggregate (such as GDP or Gross national income) and dividing it by the total population.
Answer: Option A. -> Hicks
Answer: (a)
British economist John Hicks said that National income is a collection of goods and services reduced to a common basis by being measured in terms of money. Hicks was one of the most important and influential economists of the twentieth century.
The most familiar of his many contributions in the field of economics were his statement of consumer demand theory in microeconomics, and the IS/LM model (1937), which summarized a Keynesian view of macroeconomics.
His book Value and Capital (1939) significantly extended general-equilibrium and value theory.
Answer: (a)
British economist John Hicks said that National income is a collection of goods and services reduced to a common basis by being measured in terms of money. Hicks was one of the most important and influential economists of the twentieth century.
The most familiar of his many contributions in the field of economics were his statement of consumer demand theory in microeconomics, and the IS/LM model (1937), which summarized a Keynesian view of macroeconomics.
His book Value and Capital (1939) significantly extended general-equilibrium and value theory.
Answer: Option C. -> Net National Product at factor cost
Answer: (c)
Net National Product at factor cost is also called national income.
Net National Product at factor cost is equal to sum total of value added at factor cost or net domestic product at factor cost and net factor income from abroad.
NNP at factor cost = NNP at Market Price -Net Indirect Tax.
National income measures the monetary value of the flow of output of goods and services produced within an economy over a period of time.
Answer: (c)
Net National Product at factor cost is also called national income.
Net National Product at factor cost is equal to sum total of value added at factor cost or net domestic product at factor cost and net factor income from abroad.
NNP at factor cost = NNP at Market Price -Net Indirect Tax.
National income measures the monetary value of the flow of output of goods and services produced within an economy over a period of time.
Answer: Option C. -> directly related
Answer: (c)
Consumption and income are directly or positively related.
An increase in income is associated with an increase in income; a decrease in consumption accompanies a decrease in income.
Answer: (c)
Consumption and income are directly or positively related.
An increase in income is associated with an increase in income; a decrease in consumption accompanies a decrease in income.
Answer: Option D. -> Average revenue
Answer: (d)
Average Revenue refers to revenue received per unit of output sold. It is the same as the Price of the commodity. Average revenue can be obtained by dividing the total revenue by the number of units sold.
Thus, Average Revenue (AR) = $\text"Total Revenue (TR)"/\text"Quantity sold (Q)"$
When we take the case of a single commodity,
TR = P × Q
So, AR= ${P × Q}/Q$ = P,
where P = Price of the commodity
Answer: (d)
Average Revenue refers to revenue received per unit of output sold. It is the same as the Price of the commodity. Average revenue can be obtained by dividing the total revenue by the number of units sold.
Thus, Average Revenue (AR) = $\text"Total Revenue (TR)"/\text"Quantity sold (Q)"$
When we take the case of a single commodity,
TR = P × Q
So, AR= ${P × Q}/Q$ = P,
where P = Price of the commodity
Answer: Option A. -> income of an economy grows on account of an initial investment
Answer: (a)
In economics, a multiplier is a factor of proportionality that measures how much endogenous variable changes in response to a change in some exogenous variable. For example, suppose a one-unit change in some variable x causes another variable y to change by M units.
Then the multiplier is M. In monetary macroeconomics and banking, the money multiplier measures how much the money supply increases in response to a change in the monetary base.
The multiplier may vary across countries, and will also vary depending on what measures of money are considered. For example, consider M2 as a measure of the U.S. money supply, and M0 as a measure of the U.S. monetary base.
If a USD1 increase in M0 by the Federal Reserve causes M2 to increase by $10, then the money multiplier is 10.
Answer: (a)
In economics, a multiplier is a factor of proportionality that measures how much endogenous variable changes in response to a change in some exogenous variable. For example, suppose a one-unit change in some variable x causes another variable y to change by M units.
Then the multiplier is M. In monetary macroeconomics and banking, the money multiplier measures how much the money supply increases in response to a change in the monetary base.
The multiplier may vary across countries, and will also vary depending on what measures of money are considered. For example, consider M2 as a measure of the U.S. money supply, and M0 as a measure of the U.S. monetary base.
If a USD1 increase in M0 by the Federal Reserve causes M2 to increase by $10, then the money multiplier is 10.
Answer: Option A. -> Derived demand
Answer: (a)
In the words of McConnell, the demand for factors of production is a derived demand that is derived from the finished goods and services which resources help to produce.
While the demand for goods is direct demand, demand for factors is derived from demand. It is based on the productivity of the factors.
Answer: (a)
In the words of McConnell, the demand for factors of production is a derived demand that is derived from the finished goods and services which resources help to produce.
While the demand for goods is direct demand, demand for factors is derived from demand. It is based on the productivity of the factors.
Answer: Option B. -> consumption by the citizens of the country
Answer: (b)
Collective consumption is a concept that refers to the many goods and services that are produced and consumed on a collective level, such as in cities or countries.
These include schools, libraries, roads, bridges, public transportation, health care, welfare, fire and police protection, etc.
Answer: (b)
Collective consumption is a concept that refers to the many goods and services that are produced and consumed on a collective level, such as in cities or countries.
These include schools, libraries, roads, bridges, public transportation, health care, welfare, fire and police protection, etc.
Answer: Option A. -> Undistributed profits
Answer: (a)
For the private corporate sector, retained profits adjusted for non-operating surplus/deficit is considered as its Net Saving.
Retained profits are those which are ploughed back into business after making commitments to depreciation provision for various fixed assets, debts, government and to share-holders.
Answer: (a)
For the private corporate sector, retained profits adjusted for non-operating surplus/deficit is considered as its Net Saving.
Retained profits are those which are ploughed back into business after making commitments to depreciation provision for various fixed assets, debts, government and to share-holders.
Answer: Option B. -> GNP
Answer: (b)
Gross National Product (GNP) is defined as “the market value of all goods and services produced in one year by labour and property supplied by the residents of a country.”
It is contrasted to Gross domestic product (GDP), defined as “the value of all final goods and services produced in a country in 1 year.”
Answer: (b)
Gross National Product (GNP) is defined as “the market value of all goods and services produced in one year by labour and property supplied by the residents of a country.”
It is contrasted to Gross domestic product (GDP), defined as “the value of all final goods and services produced in a country in 1 year.”
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