Top 150+ Solved Business Economics Macro MCQ Questions Answer
Q. In the linear consumption function C = a + b(Y), coefficient ‘a’ denotes
a. MPC
b. APC
c. Autonomous consumption
d. Induced consumption
Q. Which of the following could be a reason for raising public loans by a country?
a. Bringing gap between revenue and expenditure through temporary loans from central bank.
b. To reduce depression in the economy and financing public works program.
c. Financing the public sector for expanding and strengthening the public enterprises
d. All of the above
Q. Public Debt has a secular tendency to go up in every country. Which of the following are reasons contributingto 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
Q. 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
Q. Which of the following describes the situation where revenues and expenditures are equal during a givenperiod?
a. Public Debt
b. Budget Surplus
c. Balanced Budget
d. Budget Deficit
Q. Old age pension is “National Old Age Pension Schemes”, “Interest payments”, “Subsidies”, “Unemployment allowances”, “Welfare benefits to weaker sections, etc.” By incurring such expenditure, the government does not get anything in return, but it adds to the welfare of the people, especially belong to the weaker sections of the society. Such expenditure basically results in redistribution of money incomes within the society.
a. Non-Transfer Expenditure
b. Transfer Expenditure or transfer payments
c. Capital Expenditure
d. Non-Distributive Expenditure
Q. With increase in urbanization and industrialization, the role of Government started:
a. Declining
b. Increasing
c. Stagnant
d. Unstable
Q. The ratio of change in the national income in relation to the change in government spending that causes it isreferred to as:
a. Fiscal Multiplier
b. Spending Ratio
c. Expenditure Ratio
d. Cost Multiplier
Q. Expenditures incurred on civil administration, defence forces is in the nature of
a. Capital Expenditure
b. Revenue Expenditure
c. Transfer Expenditure
d. Productive Expenditure
Q. The practice by Governments in which a government spends more money than it receives as revenue isreferred to as:
a. Piggy backing
b. Direct Funding
c. Deficit financing
d. Pump Priming
Q. Expenditure on defence, interest payments, law and order maintenance and public administration expensesare generally treated as:
a. Productive Expenditure
b. Unproductive Expenditure
c. Growth-oriented Expenditure
d. Progressive Expenditure
Q. Developmental expenditure refers to
a. Revenue Expenditure incurred for meeting current expenses of the Government
b. Capital Expenditure incurred for creating long-term assets of the Government
c. Expenditure which is incurred on activities directly related to economic development
d. Expenditure which is incurred on running the normal government administration
Q. The multiplier effect is best described as:
a. the increase in final income arising from any new injection of spending
b. the increase in the expenditure of a country
c. the increase in the public debt of a country
d. the increase in investment of a country