Macro PYQ — Page 2

The domestic services performed by women at home are categorized as: 1. Non-monetary exchanges 2. Externalities 3. Personal services 4. Social services

The intervention of the government, whether to expand demand or reduce it, constitutes the ............... function. 1. Public production 2. Allocation 3. Redistribution 4. Stabilisation

What are the main sources of demand in a closed economy? 1. Consumption, government spending, and domestic investment 2. Consumption, net exports and government spending 3. Consumption, government spending, domestic investment and net exports 4. Government spending, net exports and domestic investment

Choose the correct statements from the following. (A) Capital goods are those goods which are bought not for meeting immediate need of the consumer but for producing other goods. (B) Households refer to the families or individuals who supply factors of production to the firms and which buy the goods and services from the firms (C) Consumer Price Index is the index of prices of a given basket of commodity which are bought by the representative consumer (D) Wholesale Price Index refers to the percentage change in the weighted average price level.

The classification of money in terms of narrow and broad money is due to .....

Match List-I with List-II | List-I | List-II | |---|---| | (A) Interest received from abroad | (I) revenue expenditure | | (B) Partial repayment of loan | (II) capital expenditure | | (C) Selling of equity of PSUs by the government | (III) revenue receipt | | (D) Salaries given to government employees | (IV) capital receipt | Choose the correct answer from the options given below:

Suppose at the initial equilibrium of $Y^*$, there is an exogenous or autonomous shift in peoples' expenditure pattern – they suddenly become more thrifty. What will be the sequential effect of the above on the economy? (A) The sudden decline in MPC will imply a decrease in aggregate consumption spending and hence in aggregate demand. (B) There emerges an excess supply in the economy, but that would mean a reduction in factor payments in the next round and hence a reduction in income. (C) There is no change in the total value of savings. (D) MPS of the economy increases, and hence MPC falls. Choose the correct answer from the options given below:

Which of the following is not true about currency notes and coins?

If, in an economy, the minimum level of consumption is 45 and 80% of an increase in income(Y) is consumed, what will be the consumption function of this economy?

Match List-I with List-II | List-I | List-II | |---|---| | (A) Exchange Rate | (I) Supply of foreign exchange = Demand of foreign currency. | | (B) Gold standard system of exchange rate | (II) Domestic currency loses its value in relation to a foreign currency. | | (C) Par rate of exchange | (III) External value of the domestic currency. | | (D) Currency Depreciation | (IV) An old variant of fixed exchange rate. | Choose the correct answer from the options given below:

The investment multiplier is equal to which of the following?

Identify the correct statements from the following. (A) Borrowings are non-debt creating capital receipt. (B) Revenue deficit is same as borrowings of the government. (C) When a government spends more than it collects by way of revenue, it incurs a budget deficit. (D) The revenue deficit includes only such transactions that affect the current income and expenditure of the government. Choose the correct answer from the options given below:

Which of the following are the features of public goods?

Which of the following statement is true?

Which of the following is not a merit of the flexible exchange rate system?

A farmer produces cotton in his farm and sells it to the yarn making firm at Rs 2500. The yarn making firm sells this yarn to the cloth mill for Rs 4000, who make cloth from it and this cloth is sold to a readymade garments factory for Rs 6500. The ready made garments factory sells the garments to the retailer for Rs 9000 and makes a profit of Rs 2000. Assuming that the farmer does not incur any intermediate cost, what will be total value added in the above process?

Identify the correct expression to calculate equilibrium level of income of an economy.

Identify the objectives of government budget from the following. (A) Opening bank accounts of people. (B) Economic Stability. (C) Increase the employment rate in the economy. (D) Redistribution of income Choose the correct answer from the options given below:

Which of the following will be included in the domestic territory of India?

At the short run equilibrium of income and employment, __________.

Match List-I with List-II | List-I | List-II | |---|---| | (A) Average Propensity to Consume | (I) It is the savings per unit of income | | (B) Marginal Propensity to Consume | (II) It is the consumption per unit of income | | (C) Average Ppropensity to Save | (III) It is the change in savings per unit change in income | | (D) Marginal Propensity to Save | (IV) It is the change in consumption per unit change in income. | Choose the correct answer from the options given below:

Which of the following is a debt creating capital receipt of the government?

If for a hypothetical economy, the Net National Product at Factor cost is Rs 3580 crore, Net Indirect Taxes are Rs 35 crore and Net Current Transfers from the Rest of the World are Rs 240 crore, then what will be the value of National Disposable Income?

Which of the following is not true about GST in India?