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ECONOMICS QUIZ

Total questions: 10

Worksheet time: 6mins

Name
Class
Date
1.

Deficient demand is a situation when....

a)

AD>AS corresponding to full employment

b)

AD=AS corresponding to full employment

c)

AD<AS corresponding to full employment

d)

None of these

2.

Underemployment equilibrium occurs when

a)

AD=AS corresponding to full employment

b)

AD>AS corresponding to full employment

c)

AD<AS corresponding to full employment

d)

None of these

3.

Deficient demand leads to ....

a)

Voluntary unemployment

b)

Structural unemployment

c)

Frictional unemployment

d)

Involuntary unemployment

4.

During deficient demand ,MPS is low.

a)

True

b)

False

c)

Can’t say

5.

Which of the following statement/ statements is /are true in respect of deficient demand causes

a)

increase in govt spending

b)

Decrease in import

c)

decrease in private investment expenditure

d)

High tax rates

6.

During deficient demand ...,

a)

Employment will increase

b)

Output will decrease

c)

Price level will fall

d)

None of these

7.

When actual aggregate demand is less than the planned aggregate demand required to maintain full employment level than it is called

a)

Inflationary gap

b)

Deflationary gap

c)

AD gap

d)

None of these

8.

During deficient demand private investment expenditure will......

a)

Decrease

b)

Increase

c)

Same

d)

None of these

9.

Low equilibrium trap is a situation when

a)

AD ↑ , PRODUCTION ↑ , Employment ↑, Income ↑ , and AD ↑

b)

AD↓, Production ↑,Employment ↓ , Income↓, AD↓

c)

AD↓, Production ↓, Employment ↓ , Income↓, AD↓

d)

None of these

10.

During the deficient demand , undesired stock affects in two ways which are ...

a)

Loss of profits, rise in production ahead

b)

Loss of profits , loss of production in present

c)

Loss of profits At present and low production In future

d)

None of these