BUSINESS ECONOMICS (MACRO) B.Com. Second Year 203 Questions Bank

BUSINESS ECONOMICS (MACRO) B.Com. Second Year 203 Questions Bank

1. Introduction to Macro Economics

Short Answer Questions

1. Distinguish between microeconomics and macroeconomics.

2. What are micro-macro paradoxes?

3. Write a short note on the limitations of macroeconomics.

4. Briefly explain the broad macro-economic objectives.

Long Answer Questions

1. Examine the nature of macro economics.

2. Analyse the origin and scope of macro economics.

3. Discuss the significance of macro economics.

2. National Income

Short Answer Questions

1. What are economic and non-economic activities?

2. Briefly explain the concept of national income from the angle of money flows.

3. How is national income measured using GNP, GDP and NNP?

4. Write a short note on personal and disposable income.

5. What is the net output method of national income?

6. How is national income measured in open economies?

Long Answer Questions

1. Explain the factor-income method of measuring national income.

2. Describe the expenditure method of measuring national income.

3. What is circular flow of income? Explain the assumptions and working of two sector model of economy.

3. Theories of Output and Employment

Short Answer Questions

1. What was the full employment assumption of the classical economists?

2. Briefly explain the three markets to study underlying the classical macroeconomic analysis.

3. Write a short note on the classical quantity theory of money.

4. Can there be unemployment in the classical economic theory of ouptut and employment?

5. What is rigid money wage?

6. What are the criticisms of the Keynesian Theory?

Long Answer Questions

1. Explain the classical view of determination of equilibrium level of aggregate output and employment.

2. ‘Say’s Law of Markets and the quantity theory of money are the two basic pillars of the classical macroeconomics.’ Discuss this statement fully.

3. Assess the classical theory without savings and investment and the change in demand, supply and wage.

4. Explain the classical theory with savings and investment.

5. Discuss the Keynesian criticism of the classical theory of employment.

6. Describe the simple Keynesian theory.

7. Examine the Keynesian understanding of the wage and prices and the labour market.

4. Consumption, Saving and Investment

Short Answer Questions

1. What is marginal propensity to consume and average propensity to consume?

2. Write a short note on Keynes’s psychological law of consumption.

3. What is marginal propensity and average propensity to save?

4. What is the relationship between consumption and saving functions?

5. Briefly explain the concept of pump priming thesis.

6. Mention the assumptions of accelerator principle.

Long Answer Questions

1. Describe investment, its types and the concept of investment decisions.

2. Explain the net present value method of making investment decisions.

3. Discuss the shifts in autonomous component of the aggregate demand function.

4. Examine the concept of investment multiplier and its algebraic derivation.

5. Analyse the concept of logical multiplier.

6. Explain the accelerator principle, its significance and critically appraise the same.