Top 150+ Solved Macro Economics 1 MCQ Questions Answer

From 61 to 75 of 144

Q. Income is a ------- variable

a. flow

b. discontinuous

c. stock

d. none of the above

  • a. flow

Q. Net investment is also known as

a. depreciation

b. induced investment

c. autonomousinvestment

d. capital formation

  • d. capital formation

Q. In the saving function S = -a + (1-b)Y, the term ‘b’ denotes

a. saving

b. mpc

c. mps

d. aps

  • b. mpc

Q. Who propounded Psychological law of consumption

a. adam smith

b. ricardo

c. keynes

d. pigou

  • c. keynes

Q. When MPS = 0.2, MPC will be

a. 0.8

b. 0.2

c. 1.2

d. 20

  • a. 0.8

Q. In the linear consumption function C = a + bY, coefficient ‘a’ denotes

a. mpc

b. apc

c. autonomous consumption

d. induced consumption

  • c. autonomous consumption

Q. According to Keynes, rising aggregate income is always associated with

a. higher saving rate

b. higher import

c. lower export

d. low production

  • a. higher saving rate

Q. When MPC = 0.5, the value of multiplier is

a. 5

b. 0.5

c. 2

d. 4

Q. Who postulated the law Supply creates its own demand

a. keynes

b. j b say

c. marshall

d. pigou

  • b. j b say

Q. Autonomousinvestment is

a. income inelastic

b. instable

c. interest elastic

d. incomeelastic

  • a. income inelastic

Q. MEC for a capital good was found out to be 10% and the market rate of interest is 9%,then the investment is

a. not profitable

b. profitable

c. breakeven

d. cannot say

  • b. profitable

Q. In the Keynesian two sector economy, AD>AS, then

a. s=i

b. s>i

c. s<i

d. s=0

  • c. s<i
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