Indian Economy MCQ Set-17

Macroeconomics MCQ for competitive examinations in India such as UPSC CSE, State PSC, IBPS PO, SBI PO, IBPS SO, IBPS RRB, IBPS Clerk and various government & public sector undertaking jobs in India.

Q.1 Macroeconomics distinguishes between real economy and the__________?

A. Normative economy

B. Microeconomy

C. Monetary Economy

D. None of these

Answer: C. Monetary Economy

Q.2 Macroeconomy deals with whole or aggregate economy in terms of:

A. Structure

B. Behavior

C. Performance

D. Decision Making

Answer: All options mentioned above

Q.3 In order to influence spending on goods and services in the short-run, monetary policy is directed at directly influencing_________________.

A. Economic growth rate

B. Interest rates

C. Fiscal policy

D. None of these

Answer: B. Interest rate

Note: Interest rate influence household’s decision of spending. Hence they effect good & services spending.

Q.4 Economics that passes judgment, or provides advice on policy actions is called?

A. Positive economics

B. Negative economics

C. Normative economics

D. None of these

Answer: C. Normative economics

Q.5 An important indicator of a nation’s well-being is?




D. None of these

Answer: C. GDP

Q.6 Real GDP is a measure of a country’s?

A. Wealth

B. Money

C. Economic Transactions

D. Physical output

Answer: D. Physical output

Q.7 Which of the following is NOT an example of a transfer payment in the sense of the national income accounts?

A. Government family allowances

B. Public unemployment insurance benefits

C. Dividends paid by corporations to stockholders

D. Disability pensions paid from the social insurance system

Answer: C. Dividends paid by corporations to stockholders

Q.8 Which of the following is NOT a leakage from the circular flow of income and expenditure?

A. Government purchases

B. Imports

C. Saving

D. Taxes net of government transfers

Answer: A. Government purchases

Q.9 What of the following does NOT enter GDP?

A. Public Service

B. Public Education

C. National defense

D. Life expectancy

Answer: D. Life expectancy

Q.10 The difference between real and nominal GDP is:

A. Nominal GDP only accounts for citizens

B. Real GDP also includes services, whereas nominal GDP only takes goods into account.

C. Nominal GDP uses actual price-levels.

D. Nominal GDP uses price-levels of some base year

Answer: C. Nominal GDP uses actual price-levels.

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