30 Questions
What is the primary focus of Part Four of the provided content?
Monetary Theory
Which of the following models is NOT discussed in Part Six of the provided content?
The Keynesian Model of Income
What is the title of Chapter-1 in Part One of the provided content?
The Nature and Scope of Macroeconomics
In which part of the provided content is the topic 'Balance of Payments' discussed?
Part Nine – Macroeconomics in Open Economy
What is the primary focus of Part Two of the provided content?
National Income and Economic Welfare
Which of the following topics is NOT discussed in Part Eight of the provided content?
The Keynesian Theory of Money and Prices
What is the primary focus of economic dynamics?
Tracing out the actual path of movement of the economy between two static equilibrium points
What is the main limitation of comparative statics?
Its scope is limited, excluding many important economic problems
What does Keynesian employment, income, and output analysis rely on?
Comparative statics
What is the difference between the two income levels OY1 and OY2?
OY2 is higher than OY1
What is the main difference between comparative statics and economic dynamics?
Economic dynamics studies transitional periods, while comparative statics does not
What is Kurihara's criticism of Keynes' approach?
Keynes did not show the process of transition from one equilibrium to another
What is the primary reason why imported goods are not included in national income?
They are not manufactured within the country.
What is the correct formula for calculating GNP according to the Expenditure Method?
C + I + (X - M) + G
Why is government expenditure on transfer payments not included in GNP?
Because it is not made in exchange for goods and services produced during the current year.
What is the term for the difference between exports and imports?
Export surplus
Why is the expenditure on government enterprises included in GNP?
Because it is a part of government expenditure on goods and services.
What is the relationship between GNP calculated by the income method and the expenditure method?
Both methods will give the same result if all items are correctly calculated.
What is the formula to calculate GNP at Factor Cost?
GNP at Market Prices - Indirect Taxes + Subsidies
What is the primary reason for deducting depreciation from GNP to arrive at NNP?
To account for the value of fixed capital
What is the primary reason for excluding interest received on governmental loans from the GNP?
It is a mere transfer of national income
What is the term used to describe the process of fixed capital wearing out, being damaged, or becoming obsolete?
Depreciation
What is included in the GNP according to the concept of mixed incomes?
Profits of unincorporated businesses, self-employed persons and partnerships
What is the term used to describe the net value of final goods and services evaluated at market prices?
Net National Product at Market Prices
What is the term used to describe the income earned by factors of production through participation in the production process?
National Income
Why are indirect taxes included in the GNP?
Because they are included in the price of commodities
What is the term for the allowance made by corporations for expenditure on wearing out and depreciation of machines, plants and other capital equipment?
Depreciation
What is the formula to calculate NNP at Market Prices?
GNP at Market Prices - Depreciation
What is the difference between the value of exports of goods and services and the value of imports of goods and services known as?
Net income earned from abroad
What is the primary reason for including undistributed corporate profits in the GNP?
Because they are retained by the companies
Test your knowledge of monetary theory, including the quantity theory of money, Keynesian theory, and monetarist approaches. Learn about the supply of money, credit creation, and central banking functions.
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