Economics MCQs

Page No. 275

When an economy first begins to grow more slowly ?


aGDP increase


b Inflation is likely to increase


cStock levels are likely to increase


d Investment in equipment is likely to increase



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


b 800


c810


d0.81


View Answer 0.81

Economic growth can be seen by an outward shift of ?


aThe Production Possibility Frontier


bThe Gross Domestic Barrier


cThe Marginal Consumption Frontier


d The Minimum Efficient Scale



Labour Productivity measures ?


aThe output per worker


bThe output per machine


c Total output


d Marginal output


View Answer Marginal output

In a recession, GDP ?


aGrows negatively


bGrows slowly


cGrows by 0%


dGrows rapidly


View Answer Grows by 0%

Economic growth can be measured by ?


aThe CPI


b The CBI


cGDP


dMPC


View Answer The CPI

A reflationary policy ?


aincrease injections


bReducing taxation rates


c Reducing interest rates


dReducing government spending



For equilibrium in an open four sector economy ?


aActual injections = actual withdrawals


bPlanned injections = planned withdrawals


cSavings = investment


d Government spending = tax revenue



If injections are greater than withdrawals ?


aNational income will increase


b National income will decrease


c National income will stay in equilibrium


d Price will fall



An increase in national income is likely to ?


aDecrease tax receipts


bWorsen the balance of trade


cAutomatically cause an increase in government spending


d causes an increase in injections into the economy


View Answer Decrease tax receipts

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