Introduction to Macro Economics One Mark Online Test

Introduction to Macro Economics One Mark Online Test (12th Standard Economics)

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The branches of the subject Economics are _____________.

A.Wealth and welfare B.production and consumption C.Demand and supply D.micro and macro

Who coined the word 'Macro'?

A.Adam Smith B.J M Keynes C.Ragnar Frisch D.Karl Marx

Who is regarded as the Father of Modern Macro Economics?

A.Adam Smith B.J M Keynes C.Ragnar Frisch D.Karl Marx

Identify the other name for Macro Economics.

A.Price Theory B.Income Theory C.Market Theory D.Micro Theory

Macro economics is a study of ___________________.

A.individuals B.firms C.a nation D.aggregates

Indicate the contribution of J M Keynes to economics.

A.Wealth of Nations B.General Theory C.Capital D.Public Finance

A steady increase in general price level is termed as_____________.

A.wholesale price index B.Business Cycle C.Inflation D.National Income

Identify the necessity of Economic policies.

A.to solve the basic problems B.to overcome the obstacles C.to achieve growth D.all the above

Indicate the fundamental economic activities of an economy.

A.Production and Distribution B.Production and Exchange C.Production and Consumption D.Production and Marketing

Q10

An economy consists of ___________.

A.consumption sector B.Production sector C.Government sector D.All the above

Q11

Identify the economic system where only private ownership of production exists.

A.Capitalist Economy B.Socialist Economy C.Globalist Economy D.Mixed Economy

Q12

Economic system representing equality in distribution is _________.

A.Capitalism B.Globalism C.Mixedism D.Socialism

Q13

Who is referred as 'Father of Capitalism'?

A.Adam Smith B.Karl Marx C.Thackeray D.J M Keynes

Q14

The country following Capitalism is ________________ .

A.Russia B.America C.India D.China

Q15

Identify The Father of Socialism.

A.J M Keynes B.Karl Marx C.Adam Smith D.Samuelson

Q16

An economic system where the economic activities of a nation are done both by the private and the public sectors together is termed as____________.

A.Capitalist Economy B.Socialist Economy C.Globalist Economy D.Mixed Economy

Q17

Quantity of a commodity measured at a point of time is termed as ____________.

A.production B.stock C.variable D.flow

Q18

Identify the flow variable.

A.money supply B.assets C.income D.foreign exchange reserves

Q19

Identify the sectors of a Two Sector Model.

A.Households and Firms B.Private and Public C.Internal and External D.Firms and Government

Q20

The Circular Flow Model that represents an open Economy.

A.Two Sector Model B.Three Sector Model C.Four Sector Model D.All the above

Q21

In which year was J.M. Keynes's path-breaking book "The General Theory of Employment, Interest and Money" published?

A.1933 B.1936 C.1929 D.1945

Q22

Who defined an economy as "A system by which people earn their living"?

A.J.R. Hicks B.Ragnar Frisch C.A.J. Brown D.Adam Smith

Q23

Which economic system is also referred to as a "Command Economy" or "Planned Economy"?

A.Capitalist Economy B.Socialist Economy C.Mixed Economy D.Globalist Economy

Q24

What is the "fallacy of composition" as identified in the limitations of macroeconomics?

A.Assuming that what is true for an individual must also be true for the whole economy B.Relying too heavily on mathematical models rather than actual empirical observations C.Neglecting the non-economic factors that govern societal decisions D.Overestimating the total quantity of goods produced in the manufacturing sector

Q25

Based on the system of activities, how are economies classified?

A.Developed, underdeveloped, and developing economies B.Capitalist, socialist, and mixed economies C.Small and large economies D.Closed and open economies

Q26

Under a capitalist economic system, what is considered the "golden rule" for a producer?

A.To maximize social welfare B.To ensure equal distribution of wealth C.To maximize profit D.To eliminate market competition

Q27

Who coined the term "Globalism" in 2002 to describe the new market ideology of globalization?

A.Manfred D. Steger B.Karl Marx C.Adam Smith D.J.R. Hicks

Q28

Which of the following is classified as a stock variable?

A.National Income B.Money Supply C.Export Value D.Consumption Expenditure

Q29

What is the main guiding principle behind all economic activities in a socialist economy?

A.Absolute freedom of choice B.Price mechanism C.Maximum social welfare D.Private accumulation of assets

Q30

In the circular flow of income, what does the inner circle in a two-sector economy represent?

A.Real flow of goods and services B.Monetary flow of factor prices and commodity prices C.Government taxes and subsidies D.Net export and import values

Q31

Which of the following equations represents the national income equilibrium in a three-sector economy?

A.\(Y = C + I\) B.\(Y = C + I + G\) C.\(Y = C + I + G + (X - M)\) D.\(Y = C + S + T + Rf\)

Q32

In a mixed economy, how is the problem of "what to produce, how to produce, and for whom to produce" solved?

A.Solely through the price mechanism B.Solely through central planning C.Through the price mechanism as well as state intervention D.By relying entirely on international trade regulations

Q33

What is one of the major limitations of a capitalist economy?

A.Inefficiency in resource allocation B.Absence of price mechanism C.Increasing economic inequality D.Lack of consumer sovereignty

Q34

In a four-sector economy, which sector is added to households, firms, and the government to complete the model?

A.Financial sector B.Agricultural sector C.External sector D.Industrial sector

Q35

According to J.R. Hicks, what is the definition of an economy?

A.A system by which people earn their living B.A cooperation of producers and workers to make goods and services that satisfy consumer wants C.The study of aggregates such as national income and general employment levels D.An automatic adjustment system functioning entirely under the laissez-faire principle

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This free online practice test covers Introduction to Macro Economics from the 12th Standard Economics (Samacheer Kalvi) syllabus. Choose the number of questions and an optional time limit, then answer and submit — everything is checked in your browser, with the correct answers and a worked explanation shown at the end. For the full solutions to every question in this set, see the solved MCQs page.

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