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Test: Introduction To Macroeconomics - 2 - UPSC MCQ


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15 Questions MCQ Test Indian Economy for UPSC CSE - Test: Introduction To Macroeconomics - 2

Test: Introduction To Macroeconomics - 2 for UPSC 2024 is part of Indian Economy for UPSC CSE preparation. The Test: Introduction To Macroeconomics - 2 questions and answers have been prepared according to the UPSC exam syllabus.The Test: Introduction To Macroeconomics - 2 MCQs are made for UPSC 2024 Exam. Find important definitions, questions, notes, meanings, examples, exercises, MCQs and online tests for Test: Introduction To Macroeconomics - 2 below.
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Test: Introduction To Macroeconomics - 2 - Question 1

What is an example of macroeconomic analysis simplification?

Detailed Solution for Test: Introduction To Macroeconomics - 2 - Question 1

Macroeconomic analysis often simplifies the complex reality by focusing on a single imaginary commodity as a representative of the entire economy's goods and services, allowing for generalized analysis of economic trends.

Test: Introduction To Macroeconomics - 2 - Question 2

Why might macroeconomics depart from simplification to examine distinct sectors?

Detailed Solution for Test: Introduction To Macroeconomics - 2 - Question 2

Macroeconomics sometimes examines distinct sectors like agriculture and industry separately to better understand their unique characteristics and interrelationships, which can affect the economy in ways not captured by simplification.

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Test: Introduction To Macroeconomics - 2 - Question 3

What does the presence of unemployment in an economy indicate according to macroeconomics?

Detailed Solution for Test: Introduction To Macroeconomics - 2 - Question 3

Macroeconomics recognizes unemployment as an indicator of potential systemic issues within the economy, suggesting the need for a comprehensive analysis and possible intervention to address underlying problems.

Test: Introduction To Macroeconomics - 2 - Question 4

What fundamental shift did Keynes’ book introduce to economics?

Detailed Solution for Test: Introduction To Macroeconomics - 2 - Question 4

Keynes’ seminal work introduced a fundamental shift in economics towards the importance of examining the economy as a whole, emphasizing interdependence of sectors and the role of government policies in addressing economic issues.

Test: Introduction To Macroeconomics - 2 - Question 5

In macroeconomics, who are considered the decision-makers?

Detailed Solution for Test: Introduction To Macroeconomics - 2 - Question 5

Macroeconomic policies and decisions are typically made by the State or statutory bodies such as the Reserve Bank of India (RBI) and Securities and Exchange Board of India (SEBI), focusing on public goals rather than individual profits.

Test: Introduction To Macroeconomics - 2 - Question 6

What distinguishes macroeconomic goals from those of individual economic agents?

Detailed Solution for Test: Introduction To Macroeconomics - 2 - Question 6

Unlike individual economic agents who may seek to maximize personal profit or satisfaction, macroeconomic goals are designed to serve the broader welfare of the country and its citizens, often involving public needs and social goals.

Test: Introduction To Macroeconomics - 2 - Question 7

What major economic crisis contributed to the development of macroeconomics?

Detailed Solution for Test: Introduction To Macroeconomics - 2 - Question 7

The Great Depression of 1929 and its aftermath played a significant role in the development of macroeconomics by highlighting the limitations of classical economic theories and the need for a new approach that considers the economy's aggregate performance.

Test: Introduction To Macroeconomics - 2 - Question 8

What is the primary concern of macroeconomics regarding production in a capitalist economy?

Detailed Solution for Test: Introduction To Macroeconomics - 2 - Question 8

In studying a capitalist economy, macroeconomics focuses on understanding the dynamics of production activities primarily carried out by capitalist enterprises, including their motivations, operations, and effects on the economy.

Test: Introduction To Macroeconomics - 2 - Question 9

How does the government contribute to the economy in a capitalist system?

Detailed Solution for Test: Introduction To Macroeconomics - 2 - Question 9

In a capitalist system, the government plays a key role in the economy through various functions including production, taxation, and expenditure on public goods and services, contributing to overall economic stability and growth.

Test: Introduction To Macroeconomics - 2 - Question 10

What does the external sector in macroeconomics involve?

Detailed Solution for Test: Introduction To Macroeconomics - 2 - Question 10

The external sector in macroeconomics encompasses the country's engagement in international trade (both exports and imports of goods and services) as well as capital flows between the domestic economy and the rest of the world.

Test: Introduction To Macroeconomics - 2 - Question 11

What is a capitalist enterprise characterized by?

Detailed Solution for Test: Introduction To Macroeconomics - 2 - Question 11

A capitalist enterprise is defined by its private ownership of the means of production and its orientation towards producing goods and services for sale in the market with the aim of generating profit.

Test: Introduction To Macroeconomics - 2 - Question 12

Why are certain sectors, like agriculture and industry, sometimes studied separately in macroeconomics?

Detailed Solution for Test: Introduction To Macroeconomics - 2 - Question 12

Agriculture and industry are sometimes studied separately in macroeconomics to better understand their distinct characteristics, production conditions, and how they interact with and impact each other and the overall economy.

Test: Introduction To Macroeconomics - 2 - Question 13

How does macroeconomics view the relationship between different sectors of the economy?

Detailed Solution for Test: Introduction To Macroeconomics - 2 - Question 13

Macroeconomics views different sectors of the economy as interconnected, recognizing that relationships and interdependencies among sectors like agriculture, industry, and services play a crucial role in determining the overall economic health.

Test: Introduction To Macroeconomics - 2 - Question 14

What does the study of macroeconomics include in relation to government policies?

Detailed Solution for Test: Introduction To Macroeconomics - 2 - Question 14

Macroeconomics includes the study of how different government policies, including taxation, monetary, and fiscal policies, impact the economy's overall performance, addressing issues like inflation, unemployment, and economic growth.

Test: Introduction To Macroeconomics - 2 - Question 15

How does macroeconomics approach the concept of employment?

Detailed Solution for Test: Introduction To Macroeconomics - 2 - Question 15

Macroeconomics approaches employment by examining aggregate employment levels across the entire economy, understanding how employment trends affect economic variables like output, consumption, and overall economic health.

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