Macroeconomics Quiz: Key Concepts and Theories

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Questions and Answers

What did economists believe was the primary cause of the drastic fall in income and output levels during the economic crisis?

Lack of technological advancement

Global trade restrictions

Increased government intervention

Series of errors in fiscal and monetary policies (correct)

According to Keynes, what should be the norm in economic policy?

Maximum profit for companies

Minimum government intervention

Full employment (correct)

Balanced budgets

What concept did the Keynesian school of thought challenge?

The need for consumer protection

Globalization of trade

The importance of savings

Self-correcting market forces (correct)

What year did Keynes publish his influential book on macroeconomics?

1936 Signup and view all the answers

Which of the following is NOT a focus of macroeconomics?

Individual consumer behavior Signup and view all the answers

One of the central goals of macroeconomic study is to:

Achieve full employment of resources Signup and view all the answers

What function did Keynes believe the government should fulfill in times of economic crisis?

To resolve private sector decisions that are not being made Signup and view all the answers

Which of the following problems is NOT addressed through the study of macroeconomics?

Corporate market expansion Signup and view all the answers

What is operating surplus comprised of?

Rent, interest, royalty, and profit Signup and view all the answers

How is Real GDP calculated?

Nominal GDP divided by price index Signup and view all the answers

Which method is NOT used to avoid the double counting problem?

Consumption method Signup and view all the answers

What does intermediate consumption refer to?

The use of goods in the production process Signup and view all the answers

What characterizes a closed economy?

No trade with other countries Signup and view all the answers

Which of the following describes the value of leisure accurately?

It is impossible to value accurately Signup and view all the answers

What is the definition of factor income?

Income received by factors of production for their contribution Signup and view all the answers

What is an example of a negative externality?

Industrial pollution affecting the community Signup and view all the answers

What defines a normal resident of a country?

A person who resides in a country for one year or more with economic interests there Signup and view all the answers

Which of the following statements about Gross Domestic Product (GDP) is true?

It includes production of final goods within a country's territory Signup and view all the answers

What differentiates Gross National Product (GNP) from Gross Domestic Product (GDP)?

GDP does not account for income from citizens working abroad Signup and view all the answers

Which type of income is excluded from GDP?

Net Factor Income from abroad Signup and view all the answers

Which of the following is NOT included in national income?

Gifts received from relatives Signup and view all the answers

What is an example of a non-resident of a country?

A citizen of the country living abroad for studies Signup and view all the answers

What does Net Domestic Product (NDP) account for?

It includes depreciation from gross domestic product Signup and view all the answers

Which of the following best describes Gross National Product (GNP)?

It reflects economic activities conducted by residents including those abroad Signup and view all the answers

What is the title of the economics workbook?

Economics Work Book Class - XII Signup and view all the answers

Who designed the cover of the economics workbook?

Asoke Deb Signup and view all the answers

In which year was the first edition of the workbook published?

2021 Signup and view all the answers

Which organization is responsible for publishing the economics workbook?

SCERT, Tripura Signup and view all the answers

What is the primary audience for the economics workbook?

Class XII students Signup and view all the answers

What type of publication is the economics workbook categorized as?

Workbook Signup and view all the answers

Which printing organization was involved in producing the workbook?

Satyajug Employees Co-operative Industrial Society Ltd. Signup and view all the answers

What does the 'Class - XII' in the title indicate?

The workbook is aimed at students in their final year of secondary school. Signup and view all the answers

What collaborative role did DEO West District have in this publication?

Type and Setting Signup and view all the answers

What is the significance of the '© All rights reserved by SCERT, Tripura' statement?

Protects the workbook from unauthorized reproduction. Signup and view all the answers

What is the total amount of loans created in the transactions?

4000 Signup and view all the answers

Which type of deposit allows for withdrawals at any time without restrictions?

Current account deposit Signup and view all the answers

Which statement is true about the central bank?

It controls the credit and advises the government. Signup and view all the answers

Which deposit type requires monthly contributions over a fixed period?

Recurring account deposit Signup and view all the answers

What is the reserve requirement (CRR) in the credit creation example?

20% Signup and view all the answers

Which of the following statements is true regarding commercial banks?

They deal with the general public. Signup and view all the answers

What distinguishes savings account deposits from current account deposits?

Savings accounts have higher withdrawal restrictions. Signup and view all the answers

Which type of bank primarily aims at profit?

Commercial bank Signup and view all the answers

What is one of the primary roles of a central bank?

To control the entire banking system Signup and view all the answers

Which of the following is NOT a recognized instrument of credit control?

Trading Margin Signup and view all the answers

The credit multiplier (K) is defined as:

$rac{1}{CRR}$ Signup and view all the answers

What is the primary use of reverse repo rate?

To curb inflation Signup and view all the answers

Which characteristic is most vital to the nature of money?

Portability Signup and view all the answers

What defines demand deposits in a bank?

Primary deposits plus savings account balances Signup and view all the answers

What is the role of a central bank in relation to government banking?

To act as a banker to the government Signup and view all the answers

What describes the term 'margin requirement' in banking?

The percentage of a loan that must be pledged as collateral Signup and view all the answers

Study Notes

indian economy on the eve of independence chapter notes

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Description

Test your understanding of fundamental macroeconomic concepts and theories, including the principles laid out by Keynes. Explore the government's role in economic crises, the calculation of Real GDP, and the distinction between macroeconomic focuses. This quiz is essential for students studying economics at any level.