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Economics Quiz

Total questions: 10

Worksheet time: 11mins

Name
Class
Date
1.

The ratio between change in income to change in investment is called....

a)

Credit multiplier

b)

MPC

c)

MPS

d)

OUTPUT MULTIPLIER

2.

There is __________ relation between k and MPC.

a)

Direct

b)

inverse

c)

No

d)

None of these

3.

With increase in MPS , the value of K will______

a)

Increase

b)

No change

c)

Decrease

d)

None of these

4.

As a result of increase in investment by 5000 cr , the income increases by 15,000 crore. What will be the value of K??

a)

2

b)

1

c)

3

d)

4

5.

If MPS is 0.4 what will be the value of K??

a)

5.2

b)

.25

c)

2.5

d)

None of these

6.

Which of the following is the core factor in the working of output multiplier

a)

MPS

b)

MPC

c)

APC

d)

APS

7.

The working of investment multiplier continues till _________becomes_____.

a)

Change in savings, zero

b)

Change in consumption, 1

c)

Change in savings, 1

d)

Changs in consumption , 0

8.

If MPC is 0.75 , what will be the value of K?

a)

4

b)

3

c)

2

d)

1

9.

Which of the following is correct?

a)

K= ΔY/ΔS

b)

K=1/1-MPC

c)

k= 1/MPS

d)

None of these

10.

If MPC is 0.8, what will be the increase in income due to increase in investment by 1000 crore?

a)

1520 crore

b)

1250 crore

c)

1052 crore

d)

None of these