WorksheetsNEI 2.0
Total questions: 11
Worksheet time: 22mins
In a circular flow of income in two-sector economy, injection consists of ___.
taxes
savings
investment
consumption
In a circular flow of income in a two sector economy, leakage consists of savings and investment.
TRUE
FALSE
If the consumption function is C=250 +0.75Y and investment is I = RM450, find the equilibrium income in this two sector economy.
RM2,800
RM3,600
RM7,200
RM9,000
In a two sector economy, the savings function is S=-106 + 0.5Y and investment is RM24 million. Determine the national income equilibrium.
RM120 million
RM164 million
RM260 million
RM 310 million
In a two sector economy, when national income is zero,
households incur household expenditure of RM100 million. If the marginal propensity to consume is 0.25, determine the national income equilibrium if the public sector investment is RM20 million.
RM90 million
RM120 million
RM160 million
RM480 million
The savings functions is written as S = -230 + 0.45Yd. Find the value of autonomous savings and marginal propensity to consume.
a = -230, MPC = 0.45
a = -230, MPC = 0.55
a = 230, MPC = 0.45
a = 230, MPC = 0.55
The consumption function is written as C=120 + 0.7Yd. Derive the new savings function.
s = -120 +0.7Yd
s = -120 + 0.3Yd
s = 120 + 0.3 Yd
s = 120 + 0.7Yd
Given the following information:
i. Autonomous consumption = RM100 mill
ii. MPC = 0.7
iii. Autonomous investment = RM500 mill
Find the national income equilibrium.
RM3000
RM3500
RM2000
RM2500
Y = 2000
Y = 0.75
Y = 100
Y = 1000
Z = 100
z = 200
z = 300
z = 400
X = 300
X = 400
X = 500
X = 600
