Impromptu Macro Economics MCQ Session

Welcome and Introduction

• Host welcomes viewers back to the channel.
• Focus on final review of important Macro Economics MCQs.
• Video delayed by 30 mins; host was occupied with offline students.
• Encouragement to stay focused and prepared for upcoming exam.

Important MCQs Breakdown

Question 1:

• Identify different phases in Circular Flow Diagram: Generation, Distribution, Disposition
• Correct option for given diagram: Option C

Question 2:

• Stock vs. Flow Concepts:
  • Net Investment is a flow concept (Incorrect as stock)
  • Capital is not a flow concept (Incorrect)
• Both statements are false

Question 3:

• Calculating Factor Income from Abroad:
  • A value of 200, Factor Income to Abroad is 40.
  • Formula: FIFA = NIFA + FIFA Abroad
  • Correct answer: 240 (Option C)

Question 4:

• Real GDP Calculation: Nominal GDP = 840, Price Index = 120:
  • Formula: Price Index = (Nominal / Real) × 100
  • Real GDP: 700

Question 5:

• Identify Non-Factor Payment:
  • Free uniform to defense personnel are not factor payments: Scholarship

Question 6:

• Incorrect Statements Identification:
  • GDP at MP = GDP at FC + NIT - Correct
  • Issue with NNP at FC = National Income
• Correct Answer: Option B

Question 7:

• Car Purchases by Household:
  • It is a Durable Consumer Good.
  • Assertion and reason both correct.

Question 8:

• Regulation of Money Supply:
  • Regulated by RBI

Question 9:

• Problem with Barter Systems:
  • Unemployment is not a problem associated with barter.

Question 10:

• Issuing ₹1 Currency Note:
  • Responsibility of Ministry of Finance.

Question 11:

• Scholarships & National Income:
  • Scholarships are not included: Transfer Income
• Both assertion and reason are correct.

Question 12:

• Increase in Money Supply Factors:
  • Increased by injections of money, commercial bank credit, reduced tax rates.
  • Decreased by raised bank rate. (Correct: Option 1, 2, 3)

Question 13:

• End of Credit Creation Process:
  • When total money reserves equal initial deposits.

Question 14:

• Minimum Percentage of Total Deposit by Commercial Banks in Central Bank (CRR):

Question 15:

• Foreign Exchange Rate & International Costs:
  • Assertion correct, Reason incorrect (Option C)

Question 16:

• Hypothetical Economy ₹100 Deposit Example:
  • Total money = ₹100

Question 17:

• Credit Creation Example:
  • 400Cr leads to 4000Cr deposit; Reserve Requirement 1/10 = 10%

Question 18:

• Underemployment Equilibrium:
  • Inefficient use of resources (Option D)

Question 19:

• Methods to Reduce Credit Availability:
  • Selling securities in the open market.

Question 20:

• True Statement Identification: Borrowing represents fiscal deficit:
  • True.

Question 21:

• Value of Money Multiplier Determination by Reserve Ratio:
  • Single statement true.

Question 22:

• LPG Connection Distribution and Social Justice:
  • As a sign of social justice.

Question 23:

• Negative Slope of Saving Curve in Zero-Level Income:
  • True statement.

Question 24:

• Indian Company Investing Abroad (Debit Side of Capital Account):

Question 25:

• BOP Deficit Calculation:

Question 26:

• Invisible Item Identification:
  • Merchandise is not an invisible item.

Question 27:

• Assertion on Income-Consumption Direct Relationship:
  • Both statements true.

Question 28:

• Classification of BOP Transactions:
  • Current Account and Capital Account.

Question 29:

• Estimating Export Value with Imports Configured:

Question 30:

• Credit side of Capital Account Item Identification:
  • Borrowings from rest of the world.

Question 31:

• Current Account Deficit Leads to: Insufficient Forex Receipts:
  • Correct.

Question 32:

• Revenue Receipts SoRs:
  • Borrowings increase liabilities.

Question 33:

• Non-debt creating Capital Receipt:
  • Recovery of loans.

Question 34:

• Identify Revenue and Capital Receipts:
  • Borrowings, profits.

Question 35:

• If MPC = 0, Change in National Income:
• True Statement on Public Goods:
  • Consumed collectively.

Summary & Conclusion

• Review of 50 important MCQs for Macro Economics.
• Encouragement and final tips for upcoming exam.
• Meeting again at 9 PM for presentation tips.