Set 19

Disposable Income is obtained by subtracting _____________taxes from
personal income:
1. Indirect Taxes
2. Direct Taxes
3. Subsidies
4. None
Per capita income is obtained by dividing National Income by:
1. Total labour Force in the Country
2. Unemployed Youth in the Country
3. Total population of that country.
4. None
The investment demand curve shows the relationship between the levels of:
1. Investment and Consumption
2. Consumption and Interest Rate
3. Investment and Interest Rate
4. None
The situation in which the imports are greater than exports is termed as:
1. Trade Surplus
2. Trade Deficit
3. Budget Surplus
4. None
Fiscal policy is the government programme with respect to it’s:
1. Steel Mill Privatisation
2. Unemployment Reduction
3. Expenditure and Tax revenue
4. None
Imports for any economy are considered as:
1. Injections
2. Leakages
3. Brain Drain
4. None
The accelerator is a related concept which formalises the investment response
to:
1. Consumption
2. Interest rate
3. Output
4. None
According to Keynes macroeconomic equilibrium is attained when:
1. Prime Minister is PhD in Macroeconomics
2. Aggregate Demand Equals Aggregate Supply
3. Inflation Exists in Economy.
4. None
There are __________________methods of measuring GDP:
1. Four
2. Three
3. Five
4. None
Intermediate goods are meant for:
1. Direct use by the consumers
2. further processing
3. The term do not exist
4. None
Fiscal policy refers to:
1. The actions of the central bank in controlling the money supply.
2. The spending and taxing policies used by the government to influence the
  economy.
3. The government's regulation of financial intermediaries.
4. None of the given options.
Disposable income is:
1. Total income plus transfer payments
2. Total income minus saving.
3. Total income plus net taxes.
4. Total income minus net taxes.
The deficit tends to decrease when:
1. GDP decreases slightly.
2. GDP decreases rapidly
3. GDP increases
4. GDP remains unchanged.
Money or paper currency serves at least ______________ functions:
1. Four
2. Three
3. Five
4. Seven
The economic logic behind granting central banks independence from
government in the conduct of monetary policy is:
1. To eliminate seignior age.
2. To allow open market operations.
3. To enhance the credibility of monetary policy.
4. None of the above.
An expansionary fiscal policy can:
1. Raise the national debt.
2. Decrease the national debt
3. Have no effect on national debt.
4. None of above.
Which is high powered money?
1. M1
2. M2
3. Mo
4. None
There are _________major instruments of monetary policy:
1. Three
2. Four
3. Five
4. None
The rate at which central bank lends to commercial banks is known as:
1. Reserve rate.
2. Discount rate.
3. Open market operation
4. None.
Identify the three motives of money demand:
1. Accumulative, speculative, precautionary
2. Speculative, transaction, precautionary
3. Precautionary special, transaction
4. None

Set 19

Quiz