12th Standard CBSE - Economics - Determination of Income and Employment

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Question - 1

Investment is an addition to_______

  • A supply
  • B current stock
  • C capital stock
  • D None of these 

Question - 2

Autonomous consumption indicated by __________ in the consumption function.

  • A C
  • B AC
  • C \(\overline { S } \)
  • D \(\overline { C } \)

Question - 3

What is the value of MPC when MPS is zero?

  • A 1
  • B 0
  • C \(\infty \)
  • D 0.5

Question - 4

What can be the maximum value of Marginal Propensity to Save?

  • A 0
  • B 1
  • C 2
  • D 3

Question - 5

Aggregate Supply=Consumption+___________.

  • A Supply
  • B Investment
  • C Saving
  • D Expenditure

Question - 6

What can be the minimum value of investment multiplier?

  • A 0
  • B 1
  • C 2
  • D 3

Question - 7

If the investment multiplier is 1, what will be the value of Marginal Propensity to Consume?

  • A 2
  • B 4
  • C 1
  • D 0

Question - 8

There is ................ relationship between MPS and investment multiplier.

  • A positive
  • B inverse
  • C direct
  • D None of the above

Question - 9

In case of excess demand, RBI ............... the bank rate or interest rate which makes the credit dear.

  • A increases
  • B decreases
  • C deposit
  • D None of these

Question - 10

.................... is equal to the difference between 'AD beyond full employment' and 'AD at full employment'.

  • A Recession
  • B Inflationary gap
  • C deflectionary gap
  • D None of these
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