Macro Economics-Online Practice Exam 2
Macro Economics-Online Practice Exam 2

Macro Economics-Online Practice Exam 2

NET / SET Online Practice Exams

Macro Economics

Multi-choice 2

Question

1. If we know the GNP at market prices we calculate _ GNP at factor cost by —

Answers

Adding net indirect taxes

Adding net factor income from abroad

Subtracting net indirect taxes

Subtracting net factor income from abroad

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Question

2. The difference between GNP and NNP is—

Answers

Indirect taxes

Direct taxes 

Depreciation 

Net factor income from abroad

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Question

3. National product at current prices is higher than national product at constant prices during a period of—

Answers

Stable prices 

Falling prices 

Rising prices 

Changing costs

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Question

4. The difference between GNP and GDP is equal to—

Answers

Gross foreign investment

Net foreign investment 

Net factor income from abroad

Net export 

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Question

5. Depreciation means —

Answers

Destruction of a plant in a fire accident

Loss of equipment and machines over time due to normal wear and tear 

Closure of the firm due to lockout 

Unanticipated loss

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Question

6. Which of the following is not to be included in national product ?

Answers

Wheat produced by the farmer and consumed by him

House built by the owner himself 

Income from the sale of old car 

Machine made by firm A and sold to B

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Question

7. Which one of the following items is excluded in calculating national income ?

Answers

Paid household job 

Unemployment allowance

Profit of public sector undertakings 

Patent

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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

2/3 and 200

25 and 200

25 and 295

2/3 and 225

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Question

9. If the consumption function is given by C = 25 + y, when income is 300. What is the value of total saving ?

Answers

75

100

125

Unpredictable

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Question

10. Interaction of the multiplier and acceleration is known as—

Answers

Super multiplier 

Employment multiplier 

Investment multiplier

Dynamic multiplier

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This practice type exam is prepared by myeconomics.info

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