Economics MCQs

Page No. 275

When an economy first begins to grow more slowly ?


aGDP increase

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b Inflation is likely to increase

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cStock levels are likely to increase

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d Investment in equipment is likely to increase

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If the Keynesian consumption function is C = 10 + 0.8 Td when disposable income is Rs1000 the marginal propensity to consume is what ?


a0.8

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b 800

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c810

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d0.81

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View Answer 0.81

Economic growth can be seen by an outward shift of ?


aThe Production Possibility Frontier

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bThe Gross Domestic Barrier

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cThe Marginal Consumption Frontier

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d The Minimum Efficient Scale

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Labour Productivity measures ?


aThe output per worker

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bThe output per machine

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c Total output

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d Marginal output

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View Answer Marginal output

In a recession, GDP ?


aGrows negatively

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bGrows slowly

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cGrows by 0%

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dGrows rapidly

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View Answer Grows by 0%

Economic growth can be measured by ?


aThe CPI

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b The CBI

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cGDP

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dMPC

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View Answer The CPI

A reflationary policy ?


aincrease injections

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bReducing taxation rates

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c Reducing interest rates

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dReducing government spending

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For equilibrium in an open four sector economy ?


aActual injections = actual withdrawals

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bPlanned injections = planned withdrawals

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cSavings = investment

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d Government spending = tax revenue

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If injections are greater than withdrawals ?


aNational income will increase

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b National income will decrease

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c National income will stay in equilibrium

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d Price will fall

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An increase in national income is likely to ?


aDecrease tax receipts

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bWorsen the balance of trade

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cAutomatically cause an increase in government spending

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d causes an increase in injections into the economy

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View Answer Decrease tax receipts

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