Macroeconomic Indicators - 50 MCQs for Loksewa Examinations
Macroeconomic Indicators - 50 MCQs for Loksewa Examinations
Macroeconomic indicators:
GDP & Per Capita Income
Investment, Consumption & Saving
Inflation & Public debt Management
Population & Export and Import
GDP & Per Capita Income
1. What does GDP stand for?
• a) Gross Domestic Product
• b) General Domestic Production
• c) Global Development Process
• d) Gross Development Product
Answer: a
2. GDP measures the value of:
• a) Only goods
• b) Only services
• c) Final goods and services
• d) Intermediate goods and services
Answer: c
3. Which of the following is not included in GDP?
• a) Government spending
• b) Investment
• c) Exports
• d) Household unpaid labor
Answer: d
4. Per capita income is calculated by dividing GDP by:
• a) Number of employed people
• b) Number of households
• c) Total population
• d) Total exports
Answer: c
5. Which is considered a better indicator of economic welfare?
• a) Nominal GDP
• b) Per capita income
• c) Fiscal deficit
• d) Foreign reserves
Answer: b
6. Real GDP accounts for:
• a) Price changes
• b) Export values
• c) Employment rate
• d) Only agriculture
Answer: a
7. If nominal GDP is higher than real GDP, it indicates:
• a) Deflation
• b) Inflation
• c) Balanced growth
• d) Recession
Answer: b
8. Which sector is not part of the GDP calculation in the expenditure method?
• a) Investment
• b) Net exports
• c) Savings
• d) Consumption
Answer: c
9. Which country has the highest GDP in the world (as of 2023)?
• a) China
• b) Japan
• c) United States
• d) Germany
Answer: c
10. Which of the following affects per capita income directly?
• a) Population growth
• b) Public debt
• c) Fiscal deficit
• d) Trade deficit
Answer: a
Investment, Consumption, Saving
11. Investment in macroeconomics refers to:
• a) Stock market trading
• b) Bank savings
• c) Purchase of new capital goods
• d) Government expenditure
Answer: c
12. Which of the following is a component of aggregate demand?
• a) Tax
• b) Consumption
• c) Subsidy
• d) Imports
Answer: b
13. When consumption exceeds income, saving is:
• a) Zero
• b) Negative
• c) Positive
• d) Infinite
Answer: b
14. The marginal propensity to consume (MPC) refers to:
• a) Income divided by consumption
• b) The change in consumption due to a change in income
• c) Total savings from income
• d) Total investment in economy
Answer: b
15. Higher interest rates generally lead to:
• a) More consumption
• b) Less saving
• c) More saving
• d) Lower GDP
Answer: c
16. Which of the following is not a form of investment?
• a) Buying new machinery
• b) Building a factory
• c) Depositing money in savings account
• d) Constructing roads
Answer: c
17. Autonomous consumption is the consumption when income is:
• a) High
• b) Zero
• c) Equal to expenditure
• d) Less than saving
Answer: b
18. Gross investment minus depreciation equals:
• a) Total capital stock
• b) Net investment
• c) National income
• d) GDP
Answer: b
19. If saving is more than investment, it indicates:
• a) Economic boom
• b) Inflation
• c) Economic slowdown
• d) Balanced growth
Answer: c
20. Increased consumer confidence usually results in:
• a) Lower investment
• b) Higher saving
• c) Higher consumption
• d) Lower employment
Answer: c
Inflation & Public Debt Management
21. Inflation is defined as:
• a) Decrease in money supply
• b) Increase in exports
• c) Sustained increase in general price level
• d) Increase in GDP
Answer: c
22. Which index is commonly used to measure inflation?
• a) WPI
• b) CPI
• c) GDP
• d) NDP
Answer: b
23. Hyperinflation refers to:
• a) Normal price increase
• b) Extremely rapid and out-of-control price increase
• c) Negative inflation
• d) Inflation with zero growth
Answer: b
24. Which of the following is a cause of demand-pull inflation?
• a) Increased productivity
• b) Decrease in money supply
• c) Increase in aggregate demand
• d) Decrease in taxes
Answer: c
25. Public debt is the total amount owed by:
• a) Individuals
• b) Banks
• c) Government
• d) Corporations
Answer: c
26. Which institution manages public debt in most countries?
• a) Commercial banks
• b) Ministry of Industry
• c) Central bank
• d) Stock exchange
Answer: c
27. Public debt is used mainly for:
• a) Currency exchange
• b) Budget deficit financing
• c) Buying foreign assets
• d) Export promotion
Answer: b
28. Which of the following is not a method of public debt management?
• a) Repayment
• b) Restructuring
• c) Printing more currency
• d) Conversion
Answer: c
29. High public debt can lead to:
• a) Deflation
• b) Economic boom
• c) Higher taxes
• d) Less unemployment
Answer: c
30. External debt refers to the borrowing from:
• a) Domestic banks
• b) Internal market
• c) Foreign creditors
• d) Central government
Answer: c
Population & Employment
31. Population growth affects per capita income by:
• a) Increasing it
• b) Decreasing it
• c) Not affecting it
• d) Making it infinite
Answer: b
32. Demographic dividend refers to:
• a) Increase in old-age population
• b) Economic growth due to a large working-age population
• c) High fertility rate
• d) Unemployment increase
Answer: b
33. Which is not a problem caused by high population growth?
• a) Pressure on resources
• b) Higher per capita income
• c) Unemployment
• d) Overcrowding
Answer: b
34. Underemployment is a situation where:
• a) People are not working at all
• b) People work less than their capability
• c) People work in foreign countries
• d) None of the above
Answer: b
35. The age group considered economically active is:
• a) 0-14 years
• b) 15-64 years
• c) 65+ years
• d) All of the above
Answer: b
36. Population census is conducted every:
• a) 5 years
• b) 10 years
• c) 2 years
• d) Annually
Answer: b
37. Higher literacy rate contributes to:
• a) Higher unemployment
• b) Lower productivity
• c) Economic growth
• d) Population explosion
Answer: c
38. Population density is calculated as:
• a) Population/Income
• b) Population/Area
• c) GDP/Population
• d) GDP/Area
Answer: b
39. Net migration affects:
• a) Only population size
• b) Only employment
• c) Both population and labor force
• d) Only inflation
Answer: c
40. Which policy helps reduce population growth?
• a) Expansionary fiscal policy
• b) Import substitution
• c) Family planning
• d) Export promotion
Answer: c
Export, Import & Trade
41. Exports are:
• a) Goods sold abroad
• b) Goods bought from abroad
• c) Goods kept in stock
• d) Subsidized goods
Answer: a
42. Trade deficit occurs when:
• a) Imports > Exports
• b) Exports > Imports
• c) Imports = Exports
• d) There is no trade
Answer: a
43. Which of the following improves the trade balance?
• a) Increase in imports
• b) Decrease in exports
• c) Export promotion
• d) Increase in remittance
Answer: c
44. Balance of trade includes:
• a) Only goods
• b) Goods and services
• c) Capital flows
• d) Remittances
Answer: a
45. Tariffs are used to:
• a) Encourage imports
• b) Reduce exports
• c) Protect domestic industries
• d) Increase unemployment
Answer: c
46. Which of the following is a trade barrier?
• a) Tariff
• b) Subsidy
• c) Inflation
• d) Saving
Answer: a
47. A country benefits from trade when it:
• a) Imports more
• b) Exports more
• c) Has higher population
• d) Decreases production
Answer: b
48. Trade surplus indicates:
• a) Exports < Imports
• b) Exports > Imports
• c) No trade
• d) High inflation
Answer: b
49. Which of the following is not a form of export?
• a) Tourism services
• b) Agricultural goods
• c) Raw materials
• d) Domestic consumption
Answer: d
50. Devaluation of currency makes exports:
• a) Expensive
• b) Cheaper
• c) Unaffected
• d) Zero
Answer: b
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