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Economics Quiz for Students

The document contains 20 multiple choice questions about concepts related to the circular flow model, including factors of production, flows of goods and money between households and firms, and key variables such as income, savings, and investment. It tests understanding of core economic ideas like the difference between flows and stocks, how factor incomes are distributed, and how injections and leakages impact the circular flow.

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42 views2 pages

Economics Quiz for Students

The document contains 20 multiple choice questions about concepts related to the circular flow model, including factors of production, flows of goods and money between households and firms, and key variables such as income, savings, and investment. It tests understanding of core economic ideas like the difference between flows and stocks, how factor incomes are distributed, and how injections and leakages impact the circular flow.

Uploaded by

virendrayogi2245
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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QUESTIONS AND ANSWERS FROM THE UNIT 1

1. Which is Not a factor service:

(a) Land (b) labour (c) rent (d) capital

2. Which one of the following is paid as remuneration on capital?

(a) Rent (b) wages (c) interest (d) profit

3. A television set purchased by a consumer is an example of:

(a) Money flow (b) real flow (c) nominal flow (d) none of these

4. Old age pension given to old people by the government is an example of:
(a) Money flow (b) real flow (c) nominal flow (d) both a and c

5. Which one of the following is an example of money flow :


(a) Service provided by a teacher in govt. school

(b) Rent paid to the landlord by a tenant

(c) Purchase of cement for construction of a house

(d) All of above

6. Value of production in converted into factor income after monetary value of goods and service,
is ................................ (collected/distributed) among factors of production.

7. When households purchase the final goods, there is ..................... ....... (investment/consumption:
expenditure and when producers purchase the final goods, there is .................................. .
(investment/consumption) expenditure.

8. Excess of production over consumption is called .................. (capital formation/capital stock).

9. Goods and services flow in ......... direction and money payment to acquire these, flow in the

..................... direction. [return/one]

10. Which one of the following is a stock?


(a) Wealth (b) saving (c) exports (d) profits

11. Which one of the following in Not a flow?


(a) Capital (b) income (c) investment (d) depreciation

12. Quantity measured at a point of time.


(a) Depreciation (b) stock (c) income (d) production

13. Circular flow is of ... ............... types.


(a) Two (b) three (c) four (d) all of these

14. Which one of the following is a stock variable?

(a) Income (b) savings (c) expenditure (d) money supply

15. Circular flow models are significant as they:

(a) Provide knowledge of interdependence among different sectors

(b) Give knowledge of structure of the economy

(c) Enable estimation of national income


15. Circular flow models are significant as they:

(a) Provide knowledge of interdependence among different sectors

(b) Give knowledge of structure of the economy

(c) Enable estimation of national income

(d) All of above

16. By which economic effect generate demand of goods and services?


(a) Stock (b) leakages (c) injections (d) none of these

17. Saving, taxation and imports are the example of ......................... (injections/leakages).

18. Losses are the example of .............................. (stock/flow).

19. Expansion of circular flow implies ...... ...... ... ................ (leakages/injections) into it.

20. Contraction implies ................................. (leakages/injections) from the circular flow.

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