MCQ Economics Class 12 Chapter 4 Determination of Income & Employment Advertisement MacroeconomicsMCQ’s For All Chapters – Macroeconomics Class 12th 1. Which of the following indicates AD in an open economy?Private (household) Consumption ExpenditureHousehold Investment ExpenditureGovernment expenditure + private consumption expenditureHousehold consumption expenditure+ investment expenditure + government expenditure + net exportsQuestion 1 of 152. Consumption function is a functional relationship between:Income and savingPrice and consumptionIncome and consumptionIncome, consumption and savingQuestion 2 of 153. Propensity to consume means:Tendency of the consumer towards higher consumptionRatio of consumption to incomeLevel of income at which consumption expenditure is equal to incomeAdditional income to be spent on consumptionQuestion 3 of 154. Average propensity to consume (APC) equal to : ABCDQuestion 4 of 155. MPC being equal to 0.5, what will be , if income increases by Rs.100?Rs. 60Rs. 50Rs. 40Rs. 70Question 5 of 156. Propensity to save means:Ratio of saving to incomelevel of income at which saving is equal to incomeAdditional income that is not to be savedNone of theseQuestion 6 of 157. If MPS is 0.6,what will be ∆S when income increases by Rs.100 ?Rs. 60Rs. 50Rs. 40Rs.70Question 7 of 158. Average propensity (APS) is equal to:ABCDQuestion 8 of 159. Which of the following is correct ?MPC÷MPS=11-MPC=MPS1-MPS= MPCAll of theseQuestion 9 of 1510. If MPC is 40 per cent, MPS will be70 percent60 percent50 percent40 percentQuestion 10 of 1511. Since As= C+S and AD=C+I the equilibrium will be established where C+S= C+I, or where:S=IS>ISAll the aboveQuestion 11 of 1512. Equilibrium level of income/ output and employment is viewed from which of the following approaches ?AS=AD approachS=I approachBoth (a) and (b)None of theseQuestion 12 of 1513. On account of injections and withdrawals, equilibrium level of income undergoes :A shiftNo shiftA dispersalNo changeQuestion 13 of 1514. According to Keynes, equality (equilibrium) between AD and AS can take place in a situationLess than full employmentFull employmentBeyond full employmentAll of theseQuestion 14 of 1515. If MPC = 0.9, than value of multiplier will be:691012Question 15 of 15 Loading...
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