CUET Economics Chapter-Introduction to Macroeconomics and its Concepts

Important MCQ Questions on CUET Economics Chapter-Introduction to Macroeconomics and its Concepts with Detailed explanation

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MCQ Questions for CUET Economics Chapter-Introduction to Macroeconomics and its Concepts Set-1

Macroeconomic Economics - MCQ on Introduction

Class XII

Q.1.What is economics all about?

I. Scarce resources

II. Choosingce among available resources

III. Unlimited wants

IV. Alternative uses

Answer:

II making choice among available resources

Explanation: Economics is about making choice in the presence of scarcity of resources

Q.2.What is the central problem of the Economy?

I. Resources

II. Wants

III. Scarcity

IV. Choice Making

Answer:

IV Choice Making

Explanation: The problem of making choice between scarce resources is the central problem of economy

Q.3 What do you mean by Macroeconomics?

I. Study of Economic aggregates

II. Study of Individual unit

III. Study of the world economy

IV. All of the above

Answer:

I.Study of Economic aggregates

Explanation: Macro economics is the branch of economics which study relationship between economic aggregates

Q.4. Macro Economics is also known as :

I. Theory of National Income and employment

II. Theory of pricing constitutes

III. Theory of Firm Under Perfect Competition

IV. Theory of Consumer Behaviour

Answer:

I.Theory of national Income and employment

Explanation: Theory of national Income and employment constitutes the central theme of macro economics because it is a study of relationship between economic aggregates

Q.5.What is microeconomics

I. Study of Economic aggregates

II. Study of Individual economic unit

III. Study of the economy as a whole

IV. Study of Choice Making

Answer:

II.Study of Individual economic unit

Explanation: Micro economics is the study of individual economic units

Q.6 Under which branch of economics price determination of a commodity is covered?

I. Macroeconomics

II. Micro Economics

III. All of the above

IV. None of the above

Answer:

II. Micro Economics

Explanation: Micro economics is the study of economic units and it is based on Theory of pricing.

Q.7. Who is the father of Modern Macro Economics?

I. Lord J.M Keynes

II. Adam Smith

III. Robbins

IV. Boulding

Answer:

I.Lord J.M Keynes

Explanation: The Father of Modern Macro economics is Lord J.M Keynes

who wrote Keynes general theory of employment.

Q.8. Whatis the starting point of present-day macroeconomics? Keynes's'seneral theory of employment

II. Black-Scholes Interest and Money in 1936.

III. Adam Smith's's's's theory of Income and employment

IV. All of the above

Answer:

I Keynes general theory of employment

Explanation:. Keynes general theory of employment, Interest and Money in 1936 is the starting of macro economics.

Q.9. Name groups interested in the study of macro economic events.

I. Government & Entrepreneurs

II. Economist

III. General Public

IV. None

Answer:

I Government & Entrepreneurs

Explanation: Macro Economic is used byGovernment & Entrepreneurs because it shows the position of economy

Q.10.Which of the following is included in macroeconomics

I. Demand and Supply

II. Forms of Market

III. National Income

IV. Production and Cost

Answer:

III National Income

Explanation: It is the money value of all final goods and services produced by a country during an accounting year.

Q.11.Which of the following is a macroeconomic Study?

I. Government Budget and Economy

II. Price Determination of a commodity

III. Producer’s equilibrium

IV. Consumer’s equilibrium

Answer:

I. Government Budget and economy

Explanation: It covers the budget for the whole country so it is included in macro economics

Q.12.Which branch of economics is universally true?

I. Macroeconomics

II. Microeconomics

III. Both

IV. None

Answer:

I. Macroeconomics

Explanation: Macroeconomics is universally true because it is correct for economy as a whole. In microeconomics it may be true for a particular individual but may differ for another one.

Q.13. Which branch deals with the allocation of resources?

I. Macroeconomics

II. Microeconomics

III. Both

IV. None

Answer:

II.Microeconomics

Explanation: Allocation of resources is a part of Macroeconomics as making choice between scarce resources and allocating them for productive use.

Q.14. What is the central problem in macroeconomics?

I. Scarcity and choice of Resources

II. Allocation of Resources

III. Market

IV. National Income, Employment & Economic Development

Answer:

I.Scarcity and choice of Resources

Explanation: The choice of resources and allocation is the major problem in macro economics

Q.15.What is the principal Tools of Macroeconomics?

I. Aggregate Demand & Supply of the economy

II. Aggregate Demand & Supply of the industry

III. Aggregate Demand & Supply of a sector

IV. Aggregate Demand & Supply of a company

Answer:

I. Aggregate Demand & Supply of the economy

Explanation: The demand and supply of the economy as a whole is the main principle of Macroeconomics

Q.16. Why cs is important?

I. It gives an idea of how an economy functions

II. Macroeconomics helps to understand microeconomics better

III. Macroeconomics helps to formulate and execute economic policies

IV. All of the above

Answer:

IV.All of the above

Explanation: Macroeconomics helps in knowing the economy as a whole for a better economic development

Q.17.What is meant by macroeconomics Paradoxes?

I. Self-Contradictory Statement

II. Law of Demand and supply for the economy

III. Unemployment level in the economy

IV. True statement

Answer:

I.Self Contradictory Statement

Explanation: When economic laws are true in case of individual units but untrue in case of whole economy. For eg: If an individual saves, he will be benefited, if whole society start saving economy may not be benefited

Q.18. The output level of the economy of a country as a whole has a tendency

I. To move together

II. To move inversely

III. To move slowly

IV. None

Answer:

I. To move together

Explanation: The output levels of all goods and services have a tendency to move together because the micro units make the economy as a whole

Q.19 .Money and Banking comes under which branch

I. Macro Economics

II. Microeconomics

III. Both

IV. None

Answer:

I.Macro economics

Explanation: Money and Banking deals with the Macro economics because it is the base of economy

Q.20.Determination of saving deals with

I. Micro Economics

II. Macroeconomics

III. Both

IV. None

Answer:

II.Macro economics

Explanation: The saving and investment directly affect the economy so it deals with Macro economics

Q.21.Price Determination of a commodity is a part of

I. Macroeconomics

II. Microeconomics

III. Both

IV. None

Answer:

II.Microeconomics

Explanation: Price determination deals with a particular commodity so it comes under Micro economics

Q.22.Cotton Textile Industry can be classified under

I. Macro Economics

II. Micro Economics

III. None

IV. Both

Answer:

II.Micro Economics

Explanation: The study of Cotton Textile comes under Micro Economics because it is a study of a particular industry.

Q.23.What is the aim of Macro Economics?

I. Aggregate Consumption

II. Aggregate Investment

III. Individual Saving

IV. Individual Investment

Answer:

II.Aggregate Investment

Explanation: Macro Economics is the study of aggregates so the individual investment is not considered but aggregate is considered

Q.24.Who are economic Agents

I. Individuals Taking Economic Decisions

II. Individuals who do research in economics

III. People who practice Economics

IV. Economists

Answer:

:I. Individuals Taking Economic Decisions

Explanation:Those Individuals or Institutions which take economic decisions They may be producer, They may be consumer.

Q.25.When does the great depression occurred

I. 1930

II. 1933

III. 1929

IV. 1945

Answer:

III.1929

Explanation: The great depressions was occurred in 1929.During Great Depression the output and employment level fall in Europe.

MCQ Questions for CUET Economics Chapter-Introduction to Macroeconomics and its Concepts Set-2

Q.26.What are the forms of trade

I. Import & Export

II. Balance OF Trade

III. Trade from goods for goods

IV. All

Answer:

I.Import and Export

Explanation: When the country sell goods to rest of the world then it is export

And when country purchase goods from rest of the world then it is Import

Q.27.Who are the macro Economic Decision Makers

I. SEBI

II. RBI

III. Both

IV. ALL

Answer:

III.Both

Explanation: Macroeconomic policies are pursued by state itself and statutory bodies like SEBI and RBI

Q.28.Study of Producer’s Equilibrium and Consumer’s Equilibrium comes under

I. Macro Economics

II. Microeconomics

III. Both

IV. None

Answer:

I.Micro economics

Explanation: The equilibrium of a particular producer and consumer comes under Micro Economics