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Worksheetsdetermination of incomr and employment
Total questions: 16
Worksheet time: 36mins
The value of ...... can be greater than 1
Marginal propensity to consume
Average propensity to consume
Average propensity to save
Marginal propensity to save
Statement 1: consumption function assumes that, consumption changes at a constant rate as income changes
Statement 2: autonomous consumption is the ratio of total consumption (C) to total income (Y)
Statement one is true and statement 2 is false.
Statement 1 is false and statement 2 is true.
Both statements are true
Both statements are false
Graphically aggregate demand function can be obtained by vertically adding the ......... And ......... Function.
Consumption, saving
Consumption, investment
Investment, saving
Aggregate supply, consumption
Statement 1 in a 2 sector economy consumption expenditure and investment expenditure are the two components of aggregate demand.
Statement 2 aggregate demand curve always start from point of origin with a positive slope.
Statement 1 is true and the statement 2 is false
Statement 1 is false and the statement 2 is true
Both statement are true
Both statements are false
If increase in national income is equal to increase in savings, the value of marginal propensity to conceive would be ...........
Equal to unity
Greater than one
Less than one
Equal to zero
Statement 1: The induced consumption shows the director relation between consumption and income.
Statement 2: with a certain increase in income, induced consumption also increases
Statement 1 is true and statement 2 is false
Statement 1 is false and statement 2 is true
Both statement are true
Both statement are false
Assertion (A) at the break - even level of income, the value of average propensity to consume (APC) is Zero
Reason (R) sum of average propensity to consume (APC) and average propensary to save (APS) is always equal to the one.
Both assertion (A) and reason (R) true and reason (R) is the correct explanation of assertion (A)
Both assertion (A) and reason (R) are true but reason (R) is not the correct explanation of Assertion (A)
Assertion (A) is true, but Reason (R) is false
Assertion (A) is false , but Reason (R) is true
,......... Refers to the level of aggregate demand which can be made by the corresponding supply in the economy
autonomous consumption
effective demand
Excess Damand
Deficient demand
Assertion (A) saving cow makes a negative intercept on the vertical access at the zero level of income.
Reason (R) saving function refers to the functional relation between saving and income.
Both Assertion (A) and Reason (R) are true and reason (R) is the correct explanation of Assertion (A)
Bothe assertion (A) and reason (R) are true, but reason (r);is not the correct explanation of Assertion (A)
Assertion (A) is true, but reason (R) is false
Assertion (A) is false, but reason(R) are true
Statement 1 the consumption curve is an upward sloping straight line curve due to the direct relationship between income and consumption and the assumption of constant marginal propensity to consume.
Statement 2 aggregate demand curve and the consumption curve are parallel to each other.
Statement 1 is true and statement 2 is false
Statement 1 is false and statement 2 is true
Both statements are true
Both statements are false
If marginal propensity to save (MPS) is 0.25 and initial change in investment is rupees 250 crores, then the final change in income would be......
Rupees 1000 crore
Rupees 1200 crore
Rupees 500 crore
Rupees 3,500 crore
, (a) refers to total ex - ante expenditure in an economy during an accounting year.
(Aggregate demand/ aggregate supply)
if MPs is 0.25 and initial change in investment is ₹250crores, then the final changes in income would be ................
₹1000 crore
₹1200 crore
₹500 crore
₹3500
(a) refers to total ex-ante expenditure in an economy during an accounting year
if autonomous consumption ( c ) is greater than zero, it indicates that the national income of the economy will be........
rising
falling
zero
less than one
suppose in a hypothetical economy, the income rises from ₹ 5000 crore to ₹6000 crore. as a result the consumption expenditure rises from ₹4000 crore to ₹4600 crore. MPC in such a case would be..............
0.8
0.4
0.2
0.6
