Top 50+ Solved Theory of Income and Employment MCQ Questions Answer

From 1 to 11 of 11

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 + (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. 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)
Subscribe Now

Get All Updates & News