1. Important Concepts in Micro & Macroeconomics

1.

An autonomous increase in expenditure should result in an increase in a country’s real GNP only if ?

The country’s balance of trade is negative

The country’s economy is working under conditions of less than full employment

It is government expenditure

The multiplier is at least 1.5

2.

Which among the following is considered to be the main determinant of the level of activity is in national income terms?

The level of taxation

Realized investment

Planned saving

Factor mobility

3.

A systematic record of all economic transactions completed between residents of a country and the rest of the world in a year is known as..?

Net Capital Flow

Balance of Payment

Balance of Trade

Absolute Flow

4.

Which among the following is a suitable term for the state of economy in which economic activity is slowing down but wages and prices continue to rise ?

Inflation

Deflation

Skweflation

Stagflation

5.

Which among the following is the branch of economics that deals with the performance, structure, and behavior of the economy of the entire community, either a nation, a region, or the entire world?

Heterodox approaches

Micro Economics

Macro Economics

All of the above