ZAFAR ACADEMY

Educating minds
Test 9th : Class 12th Marks 40
Topic: Complete Macroeconomics Time: 1hr. 15 min
Set: B

Descriptive Questions
Question 1: Calculate (a) Value of output (b) Intermediate consumption and (c) NVA at FC from the
following data.

4 marks
Question 2: For a hypothetical economy, the government incurs an investment expenditure of ₹ 1,000 crore. If the
value of Marginal Propensity to Save (MPS) falls from 0.25 to 0.10.
Calculate the value of increase in income due to change in the value of Marginal Propensity to Save (MPS). 4 marks

Question 3: "In an economy, ex-ante Aggregate Demand is l e s s than ex-ante Aggregate Supply." Elaborate the
possible impact of the same, on the level of output, income and employment. 4 marks

Question 4: Elaborate the ‘banker to govt’ function performed by the Reserve Bank of India. 4 marks

Question 5: On the basis of the given information, calculate the value of:
(i) Fiscal deficit (3+2 marks)
(ii) Primary deficit

S.No. Items 2021-22

(₹in crore)
(i) Revenue Receipts 20
(ii) Capital Expenditure 15
(iii) Revenue Deficit 10
(iv) Non-debt creating capital receipts 50% of revenue receipts
(v) Interest Payments 4

Question 6: (a) Explain the ‘reducing income inequality’ as objective of Government Budget. 3 marks
 (b) ‘Under the Ayushmaan Bharat Scheme, the Government provides free medicines to the economically
backward section of the society’. Identify and discuss the nature of the government expenditure
indicated in the given statement. 3 marks

Question 7: (a) Giving valid reasons, explain how the following would be treated while estimating domestic income?
(i) Payment made by American tourist for goods purchased in India.
(ii) Tomatoes grown by Ms. Puja in her kitchen garden. 3 marks

Multiple Choice Questions

Question 8: If NFIA is negative, Question 12: The value of investment multiplier lies
a. Factor income to abroad will be less than Factor between:
income from abroad a. 0 and 1
b. Factor income to abroad will be equal to Factor b. 0 and infinity
income from abroad c. 1 and infinity
c. Factor income to abroad will be more than Factor d. None of these
income from abroad
d. None of the above Question 13: ‘Excess demand in an economy may
give birth to:
Question 9: Which of the following items are excluded a. Deflationary gap
from GNP measurement?
a. Purely financial transactions b. Inflationary gap
b. Transfer of used goods and non-market goods and c. Low level of employment
services d. Excess capacity
c. Illegal activities and the value of leisure
d. All of these Question 14: If in an economy, the value of
investment multiplier is 4 and Autonomous
Question 10: Read the following figure carefully and Consumption is
choose the correct pair from the alternatives given ₹ 30 Crore, the relevant consumption function
below: would be :
a) C=30+0.75 Y b) C=(-)30+0.25Y
c) C=30-0.75Y d) C=30-0.25Y

Question 15: In an economy, the value of indirect

taxes is Rs. 200 crore and value of net
indirect taxes is (-) Rs.250 crores. Identify the value of
subsidies
a. Rs. 50 Crore
b. Rs. 450 Crore
c. Rs. (-) 450 Crore
d. Rs. 250 Crore

Question 16: Which of the following is Revenue

expenditure?
Alternatives: a. Construction of school
a) Output, Production b. Borrowings
b) Value added, Production c. Grants given to the state governments.
c) Output, Disposition d. Loans given to the state governments
d) Wealth, Development
Question 17: When the central act as a banker to the
government, what does it do?
Question 11: A car purchased by a household is a
_________. (Choose the correct a) It carries out government transactions
alternative) b) It advises on monetary and financial matters
a. single use capital good c) It keeps accounts of the government
b. single use consumer good d) It carries out government transactions, advises on
c. durable consumer good monetary and financial matters and keeps accounts of
d. semi-durable consumer good the government