Economics MCQs

Page No. 281

An increase in consumption at any given level of income is likely to lead to ?


aA fall is savings

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bAn increase in exports

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cA fall in taxation revenue

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dA decrease in import spending

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


a0.8

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b800

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c810

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d 0.81

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View Answer 810

If the Keynesian consumption function is C = 10 + 0.8 Td when disposable income is Rs1000 total consumption is what ?


a0.8

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b800

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c810

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d 0.81

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View Answer 0.8

If the marginal propensity to consume on domestic products is 0.9 the size of the multiplier is ?


a10

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b1

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c9

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d0.1

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View Answer 0.1

To anticipate what the economy is going to do next the government will look at ?


aLagging indicators

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b Flashing indicator

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cCoincidental indicators

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d Leading indicators

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View Answer Leading indicators

The socially optimal rate of growth is ?


aZero

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b Negative

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cWhere the marginal social benefit = the marginal social cost

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dTotal social costs are minimised

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Potential growth measures ?


a the growth of the fastest economy in the world

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b The fastest growth an economy has ever achieved

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c The present rate of growth of an economy

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dThe rate of growth that could be achieved if resources were fully employed

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If labour productivity per week is 200 units and there are 5 employees what is the total output ?


a 40 units

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b195 units

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c1000 units

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d200 units

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View Answer 40 units

In a boom ?


aUnemployment is likely to fall

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bPrices are likely to fall

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cDemand is likely to fall

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dImports are likely to grow

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Which of the following is an injection into the economy ?


aInvestment

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bSavings

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cTaxation

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d Imports spending

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View Answer Taxation

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