Public Debt has a secular tendency to go up in every country. Which of the following are reasons contributing to such a trend?

Increase trend in Financing of Public works programs

Increasing trend in Financing for Economic Development

Undertaking of Welfare Schemes by the Government

Piyush s mother is a teacher. She also teaches Piyush. How would you treat this white calculating national income and domestic income?

It will be included in the national income, but not in the domestic income.

It will be included in the domestic income, but not in the national income.

It will be included in domestic income as well as national income.

It will neither be included in the domestic income nor in the national income.

13 + Mcqs in Business Economics Macro in Bachelor of Commerce (B Com) Page 1 McqOptions

1.	Consider the following statements: 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
Answer» E.

Discussion

2.	Consider the following statements and identify the right ones. i. While calculating GNP, income generated by foreigners in a country is taken into consideration ii. While calculating GNP, income generated by nationals of a country outside the country is taken into account
A.	I only
B.	ii only
C.	both
D.	none
Answer» C. both

Discussion

3.	In a free market economy, self-interested individuals operate through a system of mutual interdependence to promote the general benefit of society at large. Adam Smith referred this as:
A.	Invisible hand
B.	Direct Intervention
C.	Collective Spirit
D.	Private Spirit
Answer» B. Direct Intervention

Discussion

4.	Public Debt has a secular tendency to go up in every country. Which of the following are reasons contributing to such a trend?
A.	Increase trend in Financing of Public works programs
B.	Increasing trend in Financing for Economic Development
C.	Undertaking of Welfare Schemes by the Government
D.	All of the above
Answer» E.

Discussion

5.	Expenditure on defence, interest payments, law and order maintenance and public administration expenses are generally treated as:
A.	Productive Expenditure
B.	Unproductive Expenditure
C.	Growth-oriented Expenditure
D.	Progressive Expenditure
Answer» C. Growth-oriented Expenditure

Discussion

6.	An Indian farmer produces wheat without incurring cost of inputs alll sells for Rs. 1,000 to a miller who grinds wheat into flour and sells for Rs 1,200 to baker. The baker sells bread to consumers for Rs. 1,600. Total added is Rs.
A.	1,600
B.	2,200
C.	1,000
D.	1,400
Answer» B. 2,200

Discussion

7.	The ratio of change in the national income in relation to the change in government spending that causes it is referred to as:
A.	Fiscal Multiplier
B.	Spending Ratio
C.	Expenditure Ratio
D.	Cost Multiplier
Answer» B. Spending Ratio

Discussion

8.	The practice by Governments in which a government spends more money than it receives as revenue is referred to as:
A.	Piggy backing
B.	Direct Funding
C.	Deficit financing
D.	Pump Priming
Answer» D. Pump Priming

Discussion

9.	Piyush s mother is a teacher. She also teaches Piyush. How would you treat this white calculating national income and domestic income?
A.	It will be included in the national income, but not in the domestic income.
B.	It will be included in the domestic income, but not in the national income.
C.	It will be included in domestic income as well as national income.
D.	It will neither be included in the domestic income nor in the national income.
Answer» E.

Discussion

10.	Which of the following describes the situation where revenues and expenditures are equal during a given period?
A.	Public Debt
B.	Budget Surplus
C.	Balanced Budget
D.	Budget Deficit
Answer» D. Budget Deficit

Discussion

11.	The macroeconomic models that are most supportive of the role of government policy aimed at smoothing business cycles are
A.	real business cycle models.
B.	endogenous growth models.
C.	Keynesian models.
D.	growth models.
Answer» D. growth models.

Discussion

12.	Expenditure incurred by the Government on building durable assets, like highways, multipurpose dams, irrigation projects are in the nature of
A.	Capital Expenditure
B.	Revenue Expenditure
C.	Transfer Expenditure
D.	Unproductive Expenditure
Answer» B. Revenue Expenditure

Discussion

13.	in order to influence spending on goods and services in the short-run, monetary policy is directed at directly influencing...
A.	unemployment rates.
B.	inflation rates.
C.	interest rates.
D.	economic growth rates.
Answer» C. interest rates.

Discussion

Explore topic-wise MCQs in Bachelor of Commerce (B Com).

Consider the following statements: 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?

Consider the following statements and identify the right ones. i. While calculating GNP, income generated by foreigners in a country is taken into consideration ii. While calculating GNP, income generated by nationals of a country outside the country is taken into account

In a free market economy, self-interested individuals operate through a system of mutual interdependence to promote the general benefit of society at large. Adam Smith referred this as:

Public Debt has a secular tendency to go up in every country. Which of the following are reasons contributing to such a trend?

Expenditure on defence, interest payments, law and order maintenance and public administration expenses are generally treated as:

An Indian farmer produces wheat without incurring cost of inputs alll sells for Rs. 1,000 to a miller who grinds wheat into flour and sells for Rs 1,200 to baker. The baker sells bread to consumers for Rs. 1,600. Total added is Rs.

The ratio of change in the national income in relation to the change in government spending that causes it is referred to as:

The practice by Governments in which a government spends more money than it receives as revenue is referred to as:

Piyush s mother is a teacher. She also teaches Piyush. How would you treat this white calculating national income and domestic income?

Which of the following describes the situation where revenues and expenditures are equal during a given period?

The macroeconomic models that are most supportive of the role of government policy aimed at smoothing business cycles are

Expenditure incurred by the Government on building durable assets, like highways, multipurpose dams, irrigation projects are in the nature of

in order to influence spending on goods and services in the short-run, monetary policy is directed at directly influencing...