contemporary Issues

Chapter 10: Contemporary Issues

Very Short Question Answer of Contemporary Issues 1.Define the meaning of privatization. Privatization means the transfer of government assets and activities to the private sector. In other words, it is the involvement of private sector in the management of the public enterprise, or to sell, or lease it, or transfer government ownership to private ownership. […]

Chapter 9: Government Finance

Very Short Question Answer 1. Define the government budget. Government budget is defined as the estimate of income and expenditure by government for the coming fiscal year. 2. What are contains of the government budget? Contains of the budget are as follows: i. Actual income and expenditure of the previous fiscal year. ii. Revised income […]

Chapter 8: Monetary Theory

Very Short Question Answer 1.  Define money supply. Money supply is defined as the total stock of money held by people and financial institutions including the central bank at a particular point of time. In other words, money supply is the total quantity of money circulation in an economy. 2. What do you mean by […]

Chapter 7: Business Cycles

Very Short Question Answer 1.  Define the business cycle. Business cycle is defined as the regular upward and downward fluctuation in aggregate economic activities in the economy. It is also known as trade cycle and it is the special feature of capitalist economic system. 2. What are the various phases of trade cycle? The phases […]

Chapter 5: Income Determination Model

Very Short Question Answer 1. Who developed IS-LM model? IS-LM model was developed by J.R. Hicks in 1937 A.D. 2. Define IS curve. IS curve is defined as the locus various combinations of rate of interest and level of income which gives product market equilibrium. 3. Define LM curve. LM curve is the locus of […]

Chapter 4: Kaynesian Macroeconomics

Very Short Question Answer 1. What is the main cause of unemployment according to Keynes? According to Keynes, the main cause of unemployment is deficiency of aggregate demands in the economy. The decrease in aggregate demand results decrease in output, which results unemployment in the economy. 2. What are the causes of declining MEC? The […]

Chapter 3: Classical Theory of Employment

Very Short Question Answer 1. What is unemployment? Unemployment is defined as the non-availability of jobs or works for people who are able and willing to work at the existing wage rate. It is a problem to both developed and developing countries. It creates problems like poverty, inequality, robbery, prostitution, theft, crime etc. 2. What […]

Chapter 2: National Income Accounting

Very Short Question Answer 1. What is meant by two sector economy? The economy which consists of only household and business sectors is called two sector economy. This is hypothetical concept. This is also known as the two sector closed economy. 2. Define the meaning of three sector economy. The economy which consists of household, […]

Chapter 1- Introduction to Macroeconomics

Very Short Question Answer 1. What is Macroeconomics? Macroeconomics is the branch of economics which deals with economy as a whole. In other words, it is the study very large economy-wide aggregate variables like national income, money, price level, unemployment, economic growth rates etc. 2. Point out the scope of microeconomics. The scope of macroeconomics […]