Economics MCQs

Page No. 281

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


aA fall is savings


bAn increase in exports


cA fall in taxation revenue


dA decrease in import spending



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


b800


c810


d 0.81


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


b800


c810


d 0.81


View Answer 0.8

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


a10


b1


c9


d0.1


View Answer 0.1

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


aLagging indicators


b Flashing indicator


cCoincidental indicators


d Leading indicators


View Answer Leading indicators

The socially optimal rate of growth is ?


aZero


b Negative


cWhere the marginal social benefit = the marginal social cost


dTotal social costs are minimised



Potential growth measures ?


a the growth of the fastest economy in the world


b The fastest growth an economy has ever achieved


c The present rate of growth of an economy


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



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


a 40 units


b195 units


c1000 units


d200 units


View Answer 40 units

In a boom ?


aUnemployment is likely to fall


bPrices are likely to fall


cDemand is likely to fall


dImports are likely to grow



Which of the following is an injection into the economy ?


aInvestment


bSavings


cTaxation


d Imports spending


View Answer Taxation

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