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CodeVID-M12-WS
Introduction to Macroeconomics — Practice Worksheet
Chapter: Introduction to Macroeconomics
Topic: Introduction to Macroeconomics
Maximum Marks: 35
Time: 30 minutes
Name: ____________________ Roll No.: __________ Date: ____________

General Instructions

  • All questions are compulsory.
  • Choose the correct option (A, B, C or D) for each question.
  • The answer key is at the end — try the paper first!
Section A — Multiple Choice (1 mark each) 15 × 1 = 15 marks
1.
Macroeconomics studies the:
  • A.Price of one good
  • B.Economy as a whole
  • C.Single firm
  • D.One consumer
2.
Modern macroeconomics is associated mainly with:
  • A.Adam Smith
  • B.J. M. Keynes
  • C.Alfred Marshall
  • D.Ricardo
3.
The study of the general price level (inflation) is part of:
  • A.Microeconomics
  • B.Macroeconomics
  • C.Price theory
  • D.Cost theory
4.
'Micro studies the trees, macro studies the:'
  • A.Forest
  • B.Leaves
  • C.Roots
  • D.Seeds
5.
In the two-sector circular flow, the two sectors are:
  • A.Households and firms
  • B.Government and banks
  • C.Imports and exports
  • D.Rich and poor
6.
Households supply factor services through the:
  • A.Product market
  • B.Factor market
  • C.Stock market
  • D.Money market
7.
Firms pay households ____ for their factor services.
  • A.Factor incomes (rent, wages, interest, profit)
  • B.Goods only
  • C.Taxes
  • D.Subsidies
8.
Households buy goods from firms through the:
  • A.Factor market
  • B.Product market
  • C.Bond market
  • D.Forex market
9.
A variable measured at a point of time is a:
  • A.Flow
  • B.Stock
  • C.Rate
  • D.Ratio
10.
A variable measured over a period of time is a:
  • A.Stock
  • B.Flow
  • C.Constant
  • D.Point
11.
Which is a stock variable?
  • A.Income per month
  • B.Wealth
  • C.Investment per year
  • D.Expenditure per week
12.
Which is a flow variable?
  • A.Capital
  • B.National income
  • C.Money held now
  • D.Population on a date
13.
Adding the government to households and firms makes it a:
  • A.Two-sector economy
  • B.Three-sector economy
  • C.One-sector economy
  • D.Closed market
14.
An economy that includes the external (foreign) sector is called:
  • A.A closed economy
  • B.An open economy
  • C.A barter economy
  • D.A planned economy
15.
Agriculture and mining belong to the ____ sector.
  • A.Primary
  • B.Secondary
  • C.Tertiary
  • D.External
Section B — Challenge / Olympiad (2 marks each) 10 × 2 = 20 marks
16.
Why could mass unemployment in the 1930s NOT be explained by microeconomics alone?
  • A.The whole economy can behave differently from a single market
  • B.Microeconomics studies the whole economy
  • C.There were no firms
  • D.Prices never changed
17.
In the circular flow, the income firms pay out equals the spending households return, which shows that:
  • A.One sector's expenditure is another sector's income
  • B.Money disappears
  • C.Households produce goods
  • D.Firms own the factors
18.
Wealth is a stock but income is a flow. A person can therefore have high wealth and yet a low:
  • A.Income (flow) in a given year
  • B.Stock of money
  • C.Population
  • D.Capital
19.
A leak from the circular flow (like saving or taxes) would, other things equal, make the flow of income:
  • A.Smaller in the next round
  • B.Larger
  • C.Unchanged forever
  • D.Circular only
20.
Comparing 'the unemployment rate of the country' with 'the wage of one worker', the first is macro because it is:
  • A.An economy-wide aggregate
  • B.About one person
  • C.A single price
  • D.A single firm
21.
The tertiary sector (services) has grown to dominate India's output. Banking and IT belong to which sector?
  • A.Tertiary
  • B.Primary
  • C.Secondary
  • D.External
22.
Building up from a two-sector to a four-sector model adds, in order, the:
  • A.Government and then the external sector
  • B.External and then households
  • C.Firms and then households
  • D.Banks only
23.
Investment of ₹500 crore 'during the year' is a flow, while the factory it builds is part of the country's:
  • A.Capital stock
  • B.Income flow
  • C.Consumption
  • D.Exports
24.
Macroeconomic policy tries to manage aggregates such as total output, employment and the:
  • A.General price level
  • B.Price of one good
  • C.Cost of one firm
  • D.Utility of one consumer
25.
The circular flow is the foundation of national income because it shows production, income and expenditure as:
  • A.Three equal views of the same flow
  • B.Unrelated totals
  • C.Always different
  • D.Stocks, not flows

Answer Key

Section A — Multiple Choice (1 mark each)
  1. (B) Economy as a whole
  2. (B) J. M. Keynes
  3. (B) Macroeconomics
  4. (A) Forest
  5. (A) Households and firms
  6. (B) Factor market
  7. (A) Factor incomes (rent, wages, interest, profit)
  8. (B) Product market
  9. (B) Stock
  10. (B) Flow
  11. (B) Wealth
  12. (B) National income
  13. (B) Three-sector economy
  14. (B) An open economy
  15. (A) Primary
Section B — Challenge / Olympiad (2 marks each)
  1. (A) The whole economy can behave differently from a single market
  2. (A) One sector's expenditure is another sector's income
  3. (A) Income (flow) in a given year
  4. (A) Smaller in the next round
  5. (A) An economy-wide aggregate
  6. (A) Tertiary
  7. (A) Government and then the external sector
  8. (A) Capital stock
  9. (A) General price level
  10. (A) Three equal views of the same flow
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