WorksheetsME 4.2
Total questions: 15
Worksheet time: 8mins
According to classical economists, there always exists
Underemployment in the economy
Full employment in the economy
No employment in the economy
All of these
What will be APC when APS = 0?
Infinite
Two
Zero
One
When aggregate income is Rs. 400 crore and aggregate consumption is Rs. 250 crore, the APS would be
0.33
0.37
0.40
0.42
What is a fiscal measure to correct deficient demand?
Increase in public expenditure and decrease in taxes
Decrease in public debt
All of these
Deficit financing
In an economy, the income rises from Rs. 5000 crore to Rs. 6000 crore. Consequently, the consumption rises from Rs. 4000 crore to Rs. 4600 crore. MPS in such a case would be
0.60
0.40
1.67
0.44
On the basis of government law, the compulsory payment made by the public is known as
Investment
Subsidy
Expenditure
Tax
Which among these is a direct tax
Income tax
Corporation Tax
Wealth tax
All of these
Aggregate Demand can be increased by
Increasing Bank rate
None of these
Selling government securities
Increasing Cash Reserve Ratio
If the Marginal Propensity to Consume is greater than Marginal Propensity to Save, the value of the multiplier will be
Equal to 2
Less than 2
Greater than 2
Equal to 5
Name the author of the Book 'General theory of Employment, Interest and Money'.
Alfred Marshal
John Maynard Keynes
Arthur Cecil Pigou
Thomas Robert Malthus
On which factor Keynesian Theory of Employment depends?
Effective demand
Supply
Production efficiency
None of these
Which is the determining factor for investment?
None of these
Marginal efficiency of Capital
Interest rate
Both B) and C)
Which of the following is a real investment?
Purchasing of an old factory
Construction of buildings
Purchasing of an equity share
Opening a deposit account in the Bank
If MPC is 0.50, the multiplier will be
2
0
1/4
1
Which of the following is correct?
Both B) and C)
MPC and the Multiplier have a direct relationship
MPS and the multiplier have an inverse relationship
None of these
