Top 1000+ Solved Fundamentals of Economics and Management MCQ Questions Answer
Q. The relationship between aggregate consumption expenditure and aggregate income of household sector is known as ………………………. function.
a. Consumption
b. Saving
c. Expenditure
d. Income
Q. GDP at market price exceeds GDP at factor cost by the amount of revenue raised through ……………….
a. Direct taxes
b. Indirect taxes
c. Income tax
d. Tax on rents
Q. Macroeconomics is the study of
a. Inflation
b. Unemployment
c. Growth
d. All of (a), (b) and (c) above.
Q. In a closed economy savings are equal to ……………….. at the equilibrium level of income.
a. Investments
b. Wages
c. Income-Investments
d. Wages – Consumption
Q. Which of the following methods is/are used for measuring national income?
a. Output method
b. Expenditure method
c. Income method
d. All of (a), (b) and (c) above.
Q. Net factor income from abroad is equal to
a. NNP at market price – NDP at market price
b. NDP at market prices – Indirect taxes + Subsidies
c. NDP at factor cost + Depreciation
d. NNP at market prices + Depreciation
Q. Personal disposable income is equal to ……………………..
a. Wages and salaries + Dividends paid at home – Personal income tax
b. Wages and salaries + Dividends paid at home + Factor income received from abroad – Personal income tax
c. Wages and salaries + Dividends paid at home + Factor income received from abroad + Transfers from government – Personal income tax.
d. Wages and salaries + Dividends paid at home + Factor income received from abroad - Transfers from government – Personal income tax.
Q. Personal income equals personal disposable income (Yd) plus
a. Personal savings
b. Transfers from government
c. Personal income taxes
d. Dividend payments
Q. Macroeconomics is concerned with
a. The level of output of goods and services
b. The general level of prices
c. The growth of real output
d. All of the above
Q. Personal income includes all of the following except
a. Transfer payments
b. Undistributed corporate profits
c. Personal income taxes
d. Dividend payments
Q. Nominal GDP is
a. The total value of goods and services net of exports
b. The total value of goods and services produced during periods of low unemployment
c. The total value of goods and services measured at current prices
d. The total value of goods and services produced at full employment.
Q. GDP at factor cost exceeds GDP at market price
a. When the factor income from abroad is negative
b. When depreciation on fixed capital exceeds income in investment
c. When direct tax exceeds indirect tax
d. When subsidies exceeds indirect taxes.
Q. The difference between Gross National Product (GNP) and Gross Domestic Product GDP) is
a. Excess of subsidies over indirect taxes
b. Depreciation
c. Net foreign income from abroad
d. Excess of indirect taxes over subsidies
Q. NDP does not include
a. Payments made for income taxes
b. Depreciation allowances
c. Undistributed profits
d. The value added from intermediate goods.
Q. National income is
a. NDP at market prices
b. NDP at factor cost
c. NNP at factor cost
d. GNP at market prices.