Mock Test – Introduction to Macroeconomics and National Income

1. Which of the following leads to depreciation?

2. Suppose, following data is presented for an imaginary economy:

Sr. No	Particulars	Amount ( in lakhs)
(i) (ii) (iii) (iv) (v)	Depreciation Domestic Sales Change in Stocks Exports Single use producer goods	20 200 (–) 10 10 120

3. Assertion (A): Machine purchased is always a final good.

Reason (R): Final goods directly satisfy the needs of consumers or investment on fixed assets.

4. Goods purchased for satisfaction of wants are:

5. Statement 1: Market price is the difference between factor cost and net subsidies.

Statement 2: Depreciation is added to net investment to convert into gross investment.

6. Flow of Goods and Services and factors of production across different sectors in a barter economy is known as:

7. Foreign embassies in India are a part of India’s:

8. The study of groups and broad aggregates of the economy is known as __________ .

9. Inventory is a __________ concept whereas the change in inventory is a __________ concept.

10. In which case net indirect taxes be equal to zero?

11. Statement 1: Macroeconomics is a study of individual markets of demand and supply and the players or the decisionmaker seen as trying to maximise their profits (as producers or sellers) and their personal satisfaction or welfare levels (as consumers).

Statement 2: Even a large company is ‘micro’ in the sense that it had to act in the interest of its own shareholders and not necessarily in the interest of the country as a whole.

12. Product method of calculating national income is also known as:

13. Which of the following is a Macroeconomic study?

14. Read the following figure carefully and choose the correct pair from the alternatives given below:

15. Statement 1: Net investment is a stock concept.

Statement 2 : Capital is a flow concept.

16. Which of the following item will not be included while calculating national income
by the value added method?

17. Statement 1: JM Keynes was a British economist.

Statement 2: JM Keynes was actively involved in international diplomacy during the years following the First World War.

18. Which of the following is not a factor payment?

19. ___________ are those goods which require further processing or must be resale in the same year.

20. In the production of sugar, sugarcane is a/an:

21. Read the following figure carefully and choose the correct pair from the alternatives given below:

22. Which of the following is/are economic agents?

23. Goods purchased for the following purpose are final goods:

24. Net National Product at Factor cost is called:

25. Read the following figure carefully and choose the correct pair from the alternatives given below:

26. Choose the correct alternative to be filled in the given blank.

27. Foreign embassies in India are a part of India’s:

28. Which of the following item will not be included while calculating NDP_MP?

29. NI = Domestic Income, when:

30. Which of the following item will not be included while calculating national income by income method?