Notes Macro Economics-Online Practice Exam 2 September 2, 2023 December 14, 2023 NET / SET Online Practice Exams Test Multi-choice 2 Question 1. If we know the GNP at market prices we calculate _ GNP at factor cost by — Answers Option 1 Adding net indirect taxes Option 2 Adding net factor income from abroad Option 3 Subtracting net indirect taxes Option 4 Subtracting net factor income from abroad Feedback Wrong choice Incorrect selection Correct option Wrong choice Solution Wrong (Feedback) Wrong (Feedback) Correct Option (Feedback) Wrong (Feedback) Question 2. The difference between GNP and NNP is— Answers Option 1 Indirect taxes Option 2 Direct taxes Option 3 Depreciation Option 4 Net factor income from abroad Feedback Wrong choice Incorrect selection Correct option Wrong choice Solution Wrong (Feedback) Wrong (Feedback) Correct Option (Feedback) Wrong (Feedback) Question 3. National product at current prices is higher than national product at constant prices during a period of— Answers Option 1 Stable prices Option 2 Falling prices Option 3 Rising prices Option 4 Changing costs Feedback Wrong choice Incorrect selection Correct option Wrong choice Solution Wrong (Feedback) Wrong (Feedback) Correct Option (Feedback) Wrong (Feedback) Question 4. The difference between GNP and GDP is equal to— Answers Option 1 Gross foreign investment Option 2 Net foreign investment Option 3 Net factor income from abroad Option 4 Net export Feedback Wrong choice Incorrect selection Correct option Wrong choice Solution Wrong (Feedback) Wrong (Feedback) Correct Option (Feedback) Wrong (Feedback) Question 5. Depreciation means — Answers Option 1 Destruction of a plant in a fire accident Option 2 Loss of equipment and machines over time due to normal wear and tear Option 3 Closure of the firm due to lockout Option 4 Unanticipated loss Feedback Wrong choice Correct option Incorrect selection Wrong choice Solution Wrong (Feedback) Correct Option (Feedback) Wrong (Feedback) Wrong (Feedback) Question 6. Which of the following is not to be included in national product ? Answers Option 1 Wheat produced by the farmer and consumed by him Option 2 House built by the owner himself Option 3 Income from the sale of old car Option 4 Machine made by firm A and sold to B Feedback Wrong choice Incorrect selection Correct option Wrong choice Solution Wrong (Feedback) Wrong (Feedback) Correct Option (Feedback) Wrong (Feedback) Question 7. Which one of the following items is excluded in calculating national income ? Answers Option 1 Paid household job Option 2 Unemployment allowance Option 3 Profit of public sector undertakings Option 4 Patent Feedback Wrong choice Correct option Incorrect selection Wrong choice Solution Wrong (Feedback) Correct Option (Feedback) Wrong (Feedback) Wrong (Feedback) Question 8. If the consumption function is given by C = 25 + y, then what are the values of autonomous consumption and total consumption when income is 300 ? Answers Option 1 2/3 and 200 Option 2 25 and 200 Option 3 25 and 295 Option 4 2/3 and 225 Feedback Wrong choice Incorrect selection Correct option Wrong choice Solution Wrong (Feedback) Wrong (Feedback) Correct Option (Feedback) Wrong (Feedback) Question 9. If the consumption function is given by C = 25 + y, when income is 300. What is the value of total saving ? Answers Option 1 75 Option 2 100 Option 3 125 Option 4 Unpredictable Feedback Correct option Wrong choice Incorrect selection Wrong choice Solution Correct Option (Feedback) Wrong (Feedback) Wrong (Feedback) Wrong (Feedback) Question 10. Interaction of the multiplier and acceleration is known as— Answers Option 1 Super multiplier Option 2 Employment multiplier Option 3 Investment multiplier Option 4 Dynamic multiplier Feedback Correct option Wrong choice Incorrect selection Wrong choice Solution Correct Option (Feedback) Wrong (Feedback) Wrong (Feedback) Wrong (Feedback) Prepared by www.myeconomics.info << Prev Next >> "There is no joy in possession without sharing". Share this page. Whatsapp Telegram Facebook Twitter
Multi-choice 2 Question 1. If we know the GNP at market prices we calculate _ GNP at factor cost by — Answers Option 1 Adding net indirect taxes Option 2 Adding net factor income from abroad Option 3 Subtracting net indirect taxes Option 4 Subtracting net factor income from abroad Feedback Wrong choice Incorrect selection Correct option Wrong choice Solution Wrong (Feedback) Wrong (Feedback) Correct Option (Feedback) Wrong (Feedback) Question 2. The difference between GNP and NNP is— Answers Option 1 Indirect taxes Option 2 Direct taxes Option 3 Depreciation Option 4 Net factor income from abroad Feedback Wrong choice Incorrect selection Correct option Wrong choice Solution Wrong (Feedback) Wrong (Feedback) Correct Option (Feedback) Wrong (Feedback) Question 3. National product at current prices is higher than national product at constant prices during a period of— Answers Option 1 Stable prices Option 2 Falling prices Option 3 Rising prices Option 4 Changing costs Feedback Wrong choice Incorrect selection Correct option Wrong choice Solution Wrong (Feedback) Wrong (Feedback) Correct Option (Feedback) Wrong (Feedback) Question 4. The difference between GNP and GDP is equal to— Answers Option 1 Gross foreign investment Option 2 Net foreign investment Option 3 Net factor income from abroad Option 4 Net export Feedback Wrong choice Incorrect selection Correct option Wrong choice Solution Wrong (Feedback) Wrong (Feedback) Correct Option (Feedback) Wrong (Feedback) Question 5. Depreciation means — Answers Option 1 Destruction of a plant in a fire accident Option 2 Loss of equipment and machines over time due to normal wear and tear Option 3 Closure of the firm due to lockout Option 4 Unanticipated loss Feedback Wrong choice Correct option Incorrect selection Wrong choice Solution Wrong (Feedback) Correct Option (Feedback) Wrong (Feedback) Wrong (Feedback) Question 6. Which of the following is not to be included in national product ? Answers Option 1 Wheat produced by the farmer and consumed by him Option 2 House built by the owner himself Option 3 Income from the sale of old car Option 4 Machine made by firm A and sold to B Feedback Wrong choice Incorrect selection Correct option Wrong choice Solution Wrong (Feedback) Wrong (Feedback) Correct Option (Feedback) Wrong (Feedback) Question 7. Which one of the following items is excluded in calculating national income ? Answers Option 1 Paid household job Option 2 Unemployment allowance Option 3 Profit of public sector undertakings Option 4 Patent Feedback Wrong choice Correct option Incorrect selection Wrong choice Solution Wrong (Feedback) Correct Option (Feedback) Wrong (Feedback) Wrong (Feedback) Question 8. If the consumption function is given by C = 25 + y, then what are the values of autonomous consumption and total consumption when income is 300 ? Answers Option 1 2/3 and 200 Option 2 25 and 200 Option 3 25 and 295 Option 4 2/3 and 225 Feedback Wrong choice Incorrect selection Correct option Wrong choice Solution Wrong (Feedback) Wrong (Feedback) Correct Option (Feedback) Wrong (Feedback) Question 9. If the consumption function is given by C = 25 + y, when income is 300. What is the value of total saving ? Answers Option 1 75 Option 2 100 Option 3 125 Option 4 Unpredictable Feedback Correct option Wrong choice Incorrect selection Wrong choice Solution Correct Option (Feedback) Wrong (Feedback) Wrong (Feedback) Wrong (Feedback) Question 10. Interaction of the multiplier and acceleration is known as— Answers Option 1 Super multiplier Option 2 Employment multiplier Option 3 Investment multiplier Option 4 Dynamic multiplier Feedback Correct option Wrong choice Incorrect selection Wrong choice Solution Correct Option (Feedback) Wrong (Feedback) Wrong (Feedback) Wrong (Feedback)
