Macro Economics-Online Practice Exam 1
Notes
Macro Economics-Online Practice Exam 1
Notes

Macro Economics-Online Practice Exam 1

NET / SET Online Practice Exams

Test

Multi-choice 1

Question

1. National income is less than NNP at market price by the amount of —

Answers

Transfer payments

Direct taxes 

Net indirect taxes 

Depreciation

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Question

2.  If the saving function is given by S = -25 + ¼ Y, then what will be the value of marginal propensity to consume ?

Answers

25

4

¼

¾

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Question

3. Which of the following is not included in the estimation of NNP by income method ?

Answers

Interest 

Dividends

Undistributed profit

Depreciation

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Question

4. Which of the following is not correct ?

Answers

In measuring GNP, all kinds of goods and services produced in a country during a year are measured in terms of money

In estimating GNP, only the final products are taken into account

The sale and purchase of shares of existing companies are included in GNP

The income earned through illegal activities is not included in the GNP

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Question

5.  Which of the following is a flow concept ?

Answers

Wealth

Total saving

Money

Income

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Question

6. If the consumption function is given by C = 20 + ¾ Y, then the value of multiplier will be—

Answers

¼

½

4

20

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Question

7. Which of the following is not included in disposable income ?

Answers

International transfer payments

Unemployment allowances 

Direct taxes 

Corporate dividends

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Question

8. NNP for a given year can be defined as—

Answers

The profits of manufacturing units after deducting taxes

The real value of final and intermediate goods

The market value of all the final goods and services

The total profits of all the entrepreneurs

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Question

9. If we know the GNP, then we calculate GDP by —

Answers

Adding net indirect taxes

Subtracting net indirect taxes 

Adding net factor income from abroad 

Subtracting net factor income from abroad

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Question

10. Y=C + I + G + (X – M) is—

Answers

An equation

An identity

A function

A formula

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This practice type exam is prepared by www.myeconomics.info
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