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.

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

As income rises APC rises and APS falls

As income rises both APC and APS fall

As income rises both APC and APS rise

As income rises APC falls and APS rises

Correct formula to calculate inflation rate is:

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

All are correct

{(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

Example of a direct tax:

Excise duty

VAT

Income tax

Sales tax

If MPC = 0.65, then MPS will be:

-1.55

-0.35

1.35

0.35

Which is a macroeconomic variable?

Cost of production

National income

Price of a good

Income of a firm

Who ultimately bears the burden of indirect tax?

Government

Exporter

Consumer

Producer

National income is the sum of incomes earned by:

Four factors of production

Government only

Households only

Firms only

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

0.1

0.9

0.8

1.1

Which of the following represents a linear consumption function?

C = Y + C₀

C = Y – C₀

C = C₀ + cY

C = C₀ – cY

10.

The slope of the savings function is called:

APS

MPC

APC

MPS

11.

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

0.34

1.5

0.66

0.5

12.

When interest rate falls:

Investment rises

Investment falls

Become zero

Remain constant

13.

Which is excluded from GDP?

Investment

Final goods

Services

Intermediate goods

14.

Double coincidence of wants means:

Buyers and sellers must meet in markets

Both parties want the same quantity of goods

Both parties want money

Each person must want what the other person is offering

15.

GNP = GDP + ______

Depreciation

Net factor income from abroad

Taxes

Subsidies

16.

The crowding-out effect refers to:

Government borrowing reducing private investment

Government spending increasing private investment

Decrease in government expenditure

Increase in exports

17.

Income method measures GDP by:

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

Adding up the expenditure of all households in a year

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

18.

The fiscal year in Pakistan starts from:

1st January

1st October

1st July

1st March

19.

Nominal GDP is measured at:

Market prices only

Current prices

Base year prices

Constant prices

20.

Macroeconomics primarily studies:

Inflation and unemployment

Scarcity

Utility

Demand of a good

21.

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

Store of value

Unit of account

Means of production

Medium of exchange

22.

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

Consumption

Investment

Saving

Government spending

23.

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

1600

1550

1450

1500

24.

Disposable income is:

Income after transfer payments

Income after direct taxes

Total Income / Total population

Income after indirect taxes

25.

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

4700

4400

4800

4200

26.

Real GDP is measured at:

Current prices

Selling prices

Constant prices

Market prices

27.

National income measures:

All of the above

Total income

Total production

Total expenditure

28.

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

110

120

-150

100

29.

The aggregate demand curve slopes downward mainly because of:

All of the above

Net exports effect

Interest rate effect

Wealth effect

30.

Aggregate demand is:

Total income of all people in an economy

Total demand of all goods and services

Total output of all goods and services

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