Fundamentals of Macroeconomics - MCQs with answers - Part II

Fundamentals of Macroeconomics - MCQs with answers - Part II

1) What does the term free-market denote in terms of economy?

a) Minimal government intervention in trade and minimum regulations
b) Maximum government intervention in trade and maximum regulations
c) Means of production owned by the state
d) None of the above

View Answer / Hide Answer

2) What is the term in economics for the consumption of fixed capital?

a) Investment
b) Value added
c) Production flow
d) Depreciation

View Answer / Hide Answer

3) The difference between the Gross value added and Net value added is:

a) Investment
b) Value added
c) Production flow
d) Depreciation

View Answer / Hide Answer

4) What is the sum total of gross value added of all the firms in the country?

a) Gross Domestic Product
b) Gross National Product
c) Net Domestic Product
d) Net National product

View Answer / Hide Answer

5) What is the sum total of gross value added of all the firms in the country minus the depreciation?

a) Gross Domestic Product
b) Gross National Product
c) Net Domestic Product
d) Net National product

View Answer / Hide Answer

6) What is the sum total of gross value added of all the firms in the country added with the net factor income from abroad?

a) Gross Domestic Product
b) Gross National Product
c) Net Domestic Product
d) Net National product

View Answer / Hide Answer

7) What is the Gross National Product minus the depreciation?

a) Gross Domestic Product
b) Gross National Product
c) Net Domestic Product
d) Net National product

View Answer / Hide Answer

8) In terms of economics, what is an "externality"?

a) Benefits or harm caused by a firm without payment/penalty
b) Net income from foreign countries
c) Total exports by a country in a given year
d) None of the above

View Answer / Hide Answer

9) What is the correct formula for GDP Deflater?

a) Nominal GDP - (minus) Real GDP
b) Nominal GDP + Real GDP
c) Nominal GDP/ Real GDP
d) Real GDP/ Nominal GDP

View Answer / Hide Answer

10) Friedrich Hayek was a proponent of :

a) Keynesian economics
b) Communism
c) Classical Liberalism
d) Socialism

View Answer / Hide Answer