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Economics Class 12

Total questions: 25

Worksheet time: 13mins

Name
Class
Date
1.

At Equilibrium level

a)

Consumption = Investment

b)

Saving =Investment

c)

Consumption =Saving

d)

Aggregate demand =Consumption

2.

Multiplier is ________ related to MPC

a)

Directly

b)

Indirectly

c)

Not

d)

Rarely

3.

If MPC is 0.6, then value of multiplier is

a)

2.5

b)

4

c)

1.67

d)

1

4.

If MPC is zero, the value of multiplier is

a)

0

b)

1

c)

Between 0 and 1

d)

Infinity

5.

In determination of Equilibrium level of Income by AD-AS approach, AD curve is represented by

a)

(C+I) curve

b)

(C+S) curve

c)

(S+I) curve

d)

(S+Y) curve

6.

Average Propensity to Consume equal to

a)

C/Y

b)

Y/C

c)

dC/dY

d)

dY/dC

7.

Autonomous Consumption indicates

a)

Consumption related to income

b)

Consumption not related to income

c)

Minimum income

d)

Both 1 and 2

8.

Relationship between MPS and Multiplier is

a)

Direct

b)

Indirect

c)

Not any relation

d)

All of these

9.

MPS can never be

a)

1

b)

More than 1

c)

Less than 1

d)

Zero

10.

What is the formula of Investment Multiplier?

a)

dY/dI

b)

dI/dY

c)

dS/dC

d)

dC/dS

11.

What is the shape of AD curve?

a)

Upward rising from origin

b)

Upward rising not from origin

c)

Parallel straight line

d)

Horizontal straight linr

12.

What is the sum total of MPC and MPS

a)

1

b)

O

c)

2

d)

Less than 1

13.

What is the sum total of MPC and MPS

a)

Less than 1

b)

1

c)

O

d)

Greater than 1

14.

Can Consumption be negative?

a)

Yes

b)

No

c)

Sometimes possible

d)

None of these

15.

What is break even point?

a)

When Saving is zero

b)

When consumption is zero

c)

When Income is zero

d)

When Saving is equal to Consumption

16.

Which one is not correct?

a)

APC+APS=1

b)

MPC+MPC=1

c)

APC=C/Y

d)

APS=S/Y

17.

Propensity to consume is equal to

a)

Ratio between consumption and Income

b)

Change in income to change in consumption

c)

Ratio between consumption and saving

d)

Change in income to change in saving

18.

Ex-post saving mean?

a)

Desired saving

b)

Planned saving

c)

Actual saving

d)

None of these

19.

Can Saving Curve be negative?

a)

No

b)

Yes

c)

Sometimes

d)

All of these

20.

If MPS is 1/4, the value of multiplier is

a)

6

b)

4

c)

8

d)

1

21.

Investment which is independent is termed as

a)

Autonomous Investment

b)

Induced Investment

c)

Fixed Investment

d)

Inventory Investment

22.

At Equilibrium

a)

AD=AS

b)

S=C

c)

S=Y

d)

I=C

23.

At the point where AD is equal to AS is

a)

Over Employment level

b)

Full Employment level

c)

Under Employment level

24.

Consumption function shows the relationship between

a)

Consumption and Saving

b)

Consumption and income

c)

Saving and Income

d)

Saving and Consumption

25.

What is the shape of Autonomous Investment Curve?

a)

Horizontal straight line

b)

Vertical straight line

c)

Upward rising

d)

Downward sloping