Macro PYQ — Page 23

The priorities of the government in the fiscal area, examining current policies and justifying any deviation in important fiscal measures, are set under ..........statement. 1. Medium-term Fiscal Policy 2. The Fiscal Policy Strategy 3. The Macroeconomic Framework 4. Fiscal Responsibility and Budget Management Act

Rajesh is a weaver and is looking for food for his family. He approaches Shyam who is a farmer and offers to exchange clothes in return for wheat. However, Shyam says that his family needs shoes, not clothes. Which shortcoming of the barter system is being highlighted in this case?

The basic objective of macroeconomics is to develop theoretical tools. They are called........

It may be incorrect to treat GDP as an index of the welfare of the country for the following reasons. (A) Externalities. (B) Distribution of GDP is not uniform. (C) Monetary exchanges. (D) Non-monetary exchanges. Choose the correct answer from the options given below:

When the income of domestic consumers increases, their spending will Increase and thus spending on imported goods is also likely to increase. This leads to ............... of domestic currency?

An annual allowance for wear and tear of capital goods is defined as?

Which of the following is not a source of demand for foreign exchange in India?

What is the base year?

Match list I with List II in the context of the Government Budget: | List-I | List-II | |---|---| | (A) Purchase of stocks of a private company by the general government | (I) Capital receipts | | (B) Sale of equity of a public sector enterprise to private sector | (II) Revenue receipts | | (C) Payment of interest by the government on loans from financial institutions | (III) Capital expenditure | | (D) Stamp duty received by the government on property transactions in the country | (IV) Revenue expenditure | Choose the correct answer from the options given below:

If all the people in the economy increase the proportion of income they save, the total value of savings in the economy will not increase – it will either decline or remain unchanged. This situation is known as...................

Which are the following statements are true: (A) Open Market Operations refers to buying and selling of bonds issued by the Government in the open market. (B) Currency notes and coins are called fiat money. (C) M2 and M4 are known as broad money. (D) M1 and M2 are known as narrow money. Choose the correct answer from the options given below:

What was the immediate impact of demonetization on the economy?

A firm produces Rs 1000 worth of goods per year. Rs 200 is the value of intermediate goods used by it during the year and Rs 100 is the value of capital consumption. What is the net value of total production?

Match List-I with List-II | List-I | List-II | |---|---| | (A) Macroeconomics | (I) We study the behavior of aggregate measures of the performance of the economy. | | (B) Mixed economy | (II) All important decisions regarding production, exchange and consumption of goods and services are made by the government. | | (C) Market | (III) Some important decisions are taken by the government and the economic activities are by and large conducted through the market. | | (D) Centrally planned economy | (IV) A set of arrangements where economic agents can freely exchange their endowments or products with each other. | Choose the correct answer from the options given below: 1. (A) - (I), (B) - (III), (C) - (II), (D) - (IV) 2. (A) - (I), (B) - (II), (C) - (III), (D) - (IV) 3. (A) - (I), (B) - (III), (C) - (IV), (D) - (II) 4. (A) - (III), (B) - (IV), (C) - (I), (D) - (II)

The balance of payments records the transactions in goods, services and assets between residents of a country with the rest of the world for a specified time period. Identify the main accounts in the balance of payments.

If in an economy value of Net factor Income from Abroad is 200 cores and the Factor Income to Abroad is 40 crores. Identify the value of Factor Income from Abroad.

The study of macroeconomics usually simplifies the analysis of how the country's total ouput and the level of employment are related to.

Choose the correct statements: (A) Intermediate goods are used as raw materials or inputs for production of other commodities. (B) Consumer goods are consumed when purchased by their ultimate consumers. (C) Intermediate goods crossed production process boundary. (D) Capital goods have a durable character which are used in the production process.

The cost of a bag increased from $8 to $12 in the US and ₹ 400 to ₹480 in India. What affect it has on the dollar in respect to exchange price?

An increase in exchange rate implies that the price of foreign currency in terms of domestic currency has increased; this is called ........

Measure the level of ex-ante aggregate demand when autonomous investment and consumption expenditure (A) is Rs 80 crores, and MPC is 0.75.

Identify the correct reasons that may affect the demand for foreign exchange in an economy. (A) Import of visibles. (B) Export of invisibles. (C) Remittances by residents working abroad. (D) Purchase of assets abroad. Choose the correct answer from the options given below:

During the period of COVID, there was an apprehension that the Indian economy might slip into recession. Therefore, to combat the situation, the Reserve bank of India reduced the Repo rate by 110 basis points. Arrange the consequences of the same in sequential order. (A) Increase in aggregate demand. (B) Reduction in the market lending rate by commercial banks. (C) Increase in money supply. (D) Increase in borrowings by the public. Choose the correct answer from the options given below:

The excess of Government's Revenue Expenditure over Revenue Receipts is called............... 1. Revenue Deficit 2. Fiscal Deficit 3. Monetary Deficit 4. Primary Deficit