Fundamentals of Macroeconomics - MCQs with answers - Part I
1) Who is credited with brining the term "the invisible hand" in economics?a) Adam Smith
b) John Maynard Keynes
c) F. Hayek
d) Samuelson
View Answer / Hide AnswerANSWER: a) Adam Smith
"The invisible hand" refers to the market forces that lead to eventual benefit of overall society when individuals are pursuing their goals for their own good alone. The phrase was used in his 1776 book "An Inquiry into the Nature and Causes of the Wealth of Nations"
a) Adam Smith
b) John Maynard Keynes
c) F. Hayek
d) Samuelson
View Answer / Hide AnswerANSWER: a) Adam Smith
Adam Smith's “1776 book "An Inquiry into the Nature and Causes of the Wealth of Nations"†many of the major ideas that we use in economics today
a) Adam Smith
b) John Maynard Keynes
c) F. Hayek
d) Samuelson
View Answer / Hide AnswerANSWER: b) John Maynard Keynes
John Maynard Keynes's 1936 book, 'The General Theory of Employment, Interest, and Money' laid the foundations for Macroeconomics
a) 2007
b) 1929
c) 1936
d) 2001
View Answer / Hide AnswerANSWER: b) 1929
The economic depression began after the stock market crash of 1929 that eventually led to the loss of over 13-15 million jobs.
1. In a Capitalist economy there is private ownership of means of production
2. In a communist nation, the means of production are owned by the State
3. In a free-market economy there is minimum role of the Government
Which of the above 3 statement is/are true?
a) Only 1 and 3
b) Only 2 and 3
c) Only 3
d) All are true
View Answer / Hide Answer6) Macroeconomics is a study of economics that deals with which 4 major factors:a) households, firms, government, and demand-supply
b) households, firms, government and external sector
c) firms, government, free-market, and regulations
d) none of the above
View Answer / Hide AnswerANSWER: b) households, firms, government and external sector
a) Goods used for consumption in the production process
b) Goods such as tools, machinery, etc which are used to create final consumption goods
c) Goods and services that are consumed fully when purchased by the consumers
d) None of the above
View Answer / Hide AnswerANSWER: c) Goods and services that are consumed fully when purchased by the consumers
Examples: Tea in a restaurant, packet of chips, movie at a theater etc
a) Goods used for consumption in the production process
b) Goods such as tools, machinery, etc which are used to create final consumer goods
c) Goods and services that are consumed fully when purchased by the consumers
d) None of the above
View Answer / Hide AnswerANSWER: b) Goods such as tools, machinery, etc which are used to create final consumer goods
a) they do not 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
View Answer / Hide AnswerANSWER: c) their value is included in final goods so they are not added to avoid the problem of double counting
a) Gross investment= Net investment + Depreciation
b) Gross investment= Net investment - Depreciation
c) Gross investment= Depreciation - Net investment
d) None of the above
View Answer / Hide AnswerANSWER: a) Gross investment= Net investment + Depreciation
