Class 12 Economics MCQ Chapter 3 Determination of INcome and Employment Question Answer English Medium to each chapter is provided in the list so that you can easily browse through different chapters Class 12 Economics MCQ Chapter 3 Determination of INcome and Employment and select need one. AHSEC Class 12 Economics Objective Type Solutions As Per AHSEC New Book Syllabus Download PDF. AHSEC Economics MCQ Class 12.
Class 12 Economics MCQ Chapter 3 Determination of INcome and Employment
Also, you can read the NCERT book online in these sections Solutions by Expert Teachers as per Central Board of Secondary Education (CBSE) Book guidelines. AHSEC Class 12 Economics Multiple Choice Solutions are part of All Subject Solutions. Here we have given AHSEC Class 12 Economics MCQ in English for All Chapters, You can practice these here.
Determination of INcome and Employment
Chapter: 3
| PART – A: INTRODUCTORY MICROECONOMICS |
1. In a two-sector closed economy, Aggregate Demand (AD) equals.
(i) C+G.
(ii) C+I.
(iii) C+S.
(iv) Y−T.
Ans: (ii) C+I.
2. Aggregate Supply (AS) in the Keynesian cross is equal to.
(i) C+I.
(ii) Y.
(iii) S.
(iv) C+S−I.
Ans: (ii) Y.
3. The 45° line in the Keynesian cross represents points where.
(i) AD=0.
(ii) C=0.
(iii) Planned expenditure equals income.
(iv) S=I.
Ans: (iii) Planned expenditure equals income.
4. Autonomous consumption refers to consumption that.
(i) Varies directly with income.
(ii) Occurs even at zero income.
(iii) Falls as income rises.
(iv) Equals saving at all incomes.
Ans: (ii) Occurs even at zero income.
5. Induced consumption primarily depends on.
(i) Interest rate.
(ii) Government spending.
(iii) Current income.
(iv) Wealth only.
Ans: (iii) Current income.
6. The Marginal Propensity to Consume (MPC) is defined as.
(i) C/Y.
(ii) ΔC/ΔY.
(iii) ΔY/ΔC.
(iv) 1−ΔS.
Ans: (ii) ΔC/ΔY.
7. The value of MPC lies between.
(i) −1 and 1.
(ii) 0 and 1.
(iii) 1 and ∞.
(iv) −∞ and 0.
Ans: (ii) 0 and 1.
8. Average Propensity to Consume (APC) equals.
(i) C/Y.
(ii) ΔC/ΔY.
(iii) Y/C.
(iv) ΔY/ΔC.
Ans: (i) C/Y.
9. The sum of MPC and MPS is always.
(i) 0.
(ii) 1.
(iii) >1.
(iv) <1.
Ans: (ii) 1.
10. The saving function implied by C= C̄ + bY is.
(i) S= C̄ + bY.
(ii) S= C̄ + (1−b)Y.
(iii) S= −C̄ + (1−b)Y.
(iv) S= Y−C̄ − b.
Ans: (iii) S= −C̄ + (1−b)Y.
11. Break-even income is the level of income where.
(i) S<0.
(ii) S=0.
(iii) S>0.
(iv) C=0.
Ans: (ii) S=0.
12. At income below break-even, households typically.
(i) Have zero consumption.
(ii) Have zero saving.
(iii) Dis-save.
(iv) Save all income.
Ans: (iii) Dis-save.
13. Ex-ante investment means.
(i) Actual investment after the period.
(ii) Unplanned inventory change.
(iii) Planned investment before the period.
(iv) Government investment only.
Ans: (iii) Planned investment before the period.
14. Ex-post saving is always equal to ex-post investment because.
(i) Prices are flexible.
(ii) Accounting identities include inventory changes.
(iii) MPC equals MPS.
(iv) The government balances the budget.
Ans: (ii) Accounting identities include inventory changes.
15. Effective demand is best described as.
(i) The maximum possible AD.
(ii) The AD level where AD=AS.
(iii) The AD at full employment only.
(iv) The AD net of imports.
Ans: (ii) The AD level where AD=AS.
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