Macroeconomics Quiz - MinhajMetricsHub

Welcome to your Principles of Macroeconomics Test 1.1

- This quiz consists of 30 multiple-choice questions, each carrying 1 mark.

- You have 30 minutes to complete the quiz.

- Read each question carefully and select the best answer.

- Once you submit, you cannot change your answers.

- Make sure you have a stable internet connection before starting.

Good luck!

Name

Roll No.

The crowding-out effect refers to:

Decrease in government expenditure

Increase in exports

Government borrowing reducing private investment

Government spending increasing private investment

Double coincidence of wants means:

Both parties want the same quantity of goods

Each person must want what the other person is offering

Buyers and sellers must meet in markets

Both parties want money

Income method measures GDP by:

Adding up the expenditure of all households in a year

Adding up all the expenditure such as C+I+G+NX in a year

Adding up the incomes of all factors of production in a year

Adding up market value of all final goods and services in a year

Disposable income is:

Income after indirect taxes

Income after direct taxes

Total Income / Total population

Income after transfer payments

National income measures:

Total expenditure

Total income

All of the above

Total production

The slope of the savings function is called:

APS

MPS

MPC

APC

Macroeconomics primarily studies:

Scarcity

Utility

Inflation and unemployment

Demand of a good

Which of the following represents a linear consumption function?

C = Y + C₀

C = C₀ + cY

C = Y – C₀

C = C₀ – cY

If Nominal GDP = 1200 and Real GDP = 1000, the GDP Deflator is:

100

-150

110

120

10.

GNP is 2000 and Depreciation = 300. If Indirect Taxes = 200 and Subsidies = 50, what is National Income?

1450

1550

1500

1600

11.

Correct formula to calculate inflation rate is:

{(Previous Year GDP Deflator - Current Year GDP Deflator) / Current Year GDP Deflator} * 100

{(Current Year GDP Deflator - Previous Year GDP Deflator) / Previous Year GDP Deflator} * 100

All are correct

{(Current Year GDP Deflator - Previous Year GDP Deflator) / Current Year GDP Deflator} * 100

12.

National income is the sum of incomes earned by:

Government only

Four factors of production

Households only

Firms only

13.

Aggregate demand is:

Total output of all goods and services

Total income of all people in an economy

Total demand of all goods and services

14.

If Y = 1200 and C = 800, calculate APS.

0.5

0.66

0.34

1.5

15.

Which is a macroeconomic variable?

Income of a firm

Cost of production

National income

Price of a good

16.

Which of the following statement is correct about APC and APS?

As income rises APC falls and APS rises

As income rises APC rises and APS falls

As income rises both APC and APS fall

As income rises both APC and APS rise

17.

GNP = GDP + ______

Taxes

Depreciation

Net factor income from abroad

Subsidies

18.

If MPC = 0.65, then MPS will be:

1.35

-1.55

0.35

-0.35

19.

The fiscal year in Pakistan starts from:

1st October

1st March

1st January

1st July

20.

Which of the following is a leakage from the circular flow of income?

Consumption

Investment

Government spending

Saving

21.

Nominal GDP is measured at:

Current prices

Base year prices

Market prices only

Constant prices

22.

When interest rate falls:

Investment falls

Become zero

Remain constant

Investment rises

23.

Which of the following is NOT a primary function of money?

Store of value

Medium of exchange

Means of production

Unit of account

24.

Which is excluded from GDP?

Services

Intermediate goods

Final goods

Investment

25.

The aggregate demand curve slopes downward mainly because of:

Wealth effect

Net exports effect

All of the above

Interest rate effect

26.

If GDP = 4500, Factor Income from Abroad = 100, Factor Income to Abroad = 200 and Depreciation = 200, what is NNP?

4800

4700

4200

4400

27.

Real GDP is measured at:

Current prices

Market prices

Constant prices

Selling prices

28.

Who ultimately bears the burden of indirect tax?

Producer

Government

Exporter

Consumer

29.

Example of a direct tax:

Sales tax

Excise duty

Income tax

VAT

30.

If ΔY = 10500 and ΔC = 9500, find the MPS:

1.1

0.9

0.8

0.1

Congratulations!

You have successfully completed the Principles of Macroeconomics Test 1.1
Your answers have been recorded by the system.
Results will be shared by the instructor after evaluation.