Top 150+ Solved Macro Economics 1 MCQ Questions Answer

From 121 to 135 of 144

Q. Which of the following is an example of economic overhead?

a. schools

b. roads and railwlays

c. sanitary facilities

d. hospitals

  • b. roads and railwlays

Q. Schedule that expressesrelationship between rate of interest and corresponding amountof investment

a. mei

b. mec

c. effective demand

d. aggregate demand

  • a. mei

Q. Net investment is

a. value of gross minus subsidies

b. investment after providing for depreciation

c. value of gross output before providing forsubsidies

d. none of the above

  • b. investment after providing for depreciation

Q. MEC is directly related to

a. prospective yield

b. supply price

c. rate of interest

d. all of the above

  • a. prospective yield

Q. According to Keynes the most important determinant ofconsumption

a. rate of interest

b. saving

c. income

d. investment

  • c. income

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

a. s=i

b. s>i

c. s<i

d. s=0

  • b. s>i

Q. In the equation C = 60 + 0.6 Y, MPCis

a. 60

b. 0.6

  • b. 0.6

Q. Keynes assumed thepresence of --------- economy for the fundamental law ofconsumption

a. capitalistic

b. socialistic

c. planned

d. none of the above

  • a. capitalistic

Q. According to Keynes the most important determinant ofinvestment

a. mec

b. effective demand

c. aggregate demand

d. rate of interest

  • a. mec

Q. In a two sector economy, aggregate demand is equalto

a. c+i

b. c+s

c. s+i

d. all of the above

  • a. c+i

Q. In Keynesian terminology, investment means:

a. financial investment

b. real investment

c. induced investment

d. none of the above

  • b. real investment

Q. Rate of change in savings to change in income:

a. aps

b. apc

c. mps

d. mpc

  • c. mps

Q. Keynesian economics is also known as:

a. supply side economics

b. monetary economics

c. rational expectations

d. depression economics

  • d. depression economics

Q. Which of the following can cause shifts in consumption function:

a. psychological attitude

b. social practices

c. business motives

d. changes in price level

  • d. changes in price level
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