Top 50+ Solved Theories of Output and Employment MCQ Questions Answer

From 1 to 13 of 13

Q. When output exceeds spending:

a. There is unsold output, and level of output will fall

b. There is unsold output, and level of output will rise

c. There is unsold output, and level of spending will rise

d. There is no unsold output since the level of spending will rise

  • a. There is unsold output, and level of output will fall

Q. Saving is a function of

a. Export

b. Import

c. Investment

d. Income

  • d. Income

Q. Entrepreneurs will have no tendency to expand or contract output and employment when

a. AD>AS

b. AD<AS

c. AD=AS

d. None of the above

  • c. AD=AS

Q. The slope of the consumption function is called

a. MPC

b. MPS

c. APC

d. APS

  • a. MPC

Q. The concept of effective demand is associated with the name of

a. Marshall

b. Keynes

c. Krugman

d. Say

  • b. Keynes

Q. Net investment is also known as

a. Depreciation

b. Induced investment

c. Autonomous investment

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 + b(Y), coefficient ‘a’ denotes

a. MPC

b. APC

c. Autonomous consumption

d. Induced consumption

  • c. Autonomous consumption

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

a. Capitalistic

b. Socialistic

c. Planned

d. None of the above

  • a. Capitalistic
  • 1 (current)
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