The value of investment multiplier relates to (1) change in income due to change in autonomous investment. (2) change in autonomous investment due to change in income. (3) change in income due to change in consumption. (4) change in the income due to change in induced investment.

The value of investment multiplier relates to (1) change in income due to change in autonomous investment. (2) change in autonomous investment due to change in income. (3) change in income due to change in consumption. (4) change in the income due to change in induced investment.
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change in autonomous investment due to change in income.
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The value of investment multiplier relates to - (1) change in income due to change in autonomous investment. (2) change in autonomous investment due to change in income. (3) change in income due to change in consumption. (4) change in the income due to change in induced investment.

Description : The value of investment multiplier relates to - (1) change in income due to change in autonomous investment. (2) change in autonomous investment due to change in income. (3) change in income due to change in consumption. (4) change in the income due to change in induced investment.

Last Answer : (2) change in autonomous investment due to change in income. Explanation: The term investment multiplier refers to the concept that any increase in public or private investment spending has a ... . The investment multiplier tries to determine the financial impact for a public or private project.

Investment multiplier shows the effect of investment on - (1) Employment (2) Savings (3) Income (4) Consumption

Description : Investment multiplier shows the effect of investment on - (1) Employment (2) Savings (3) Income (4) Consumption

Last Answer : (3) Income Explanation: Investment multiplier is simply the multiplier effect of an injection of investment into an economy. The multiplier effect refers to the idea that an initial spending rise can lead to even greater increase in national income

Investment Multiplier is a (a) ratio between income and investment. (b) ratio between investment and savings (c) ratio between consumption and investment (d) None of the abov

Description : Investment Multiplier is a (a) ratio between income and investment. (b) ratio between investment and savings (c) ratio between consumption and investment (d) None of the abov

Last Answer : (b) ratio between investment and savings

Investment multiplier shows the effect of investment on (1) Employment(2) Savings (3) Income (4) Consumption

Description : Investment multiplier shows the effect of investment on (1) Employment(2) Savings (3) Income (4) Consumption

Last Answer : Income

By whom was the autonomous investment separated from induced investment? (1) Schumpeter (2) Malthus (3) Joan Robinson (4) Adam Smith

Description : By whom was the autonomous investment separated from induced investment? (1) Schumpeter (2) Malthus (3) Joan Robinson (4) Adam Smith

Last Answer : (1) Schumpeter Explanation: Under his concept of creative destruction, Schunipeter distinguished between two types of investment that he called induced and autonomous. Induced investment arose from the ... Saving up constituted the part of out-put that is withheld from investment and consumption.

The additional capital used per unit of additional production is called a. Induced investment b. Autonomous investment c. Incremental COR d. None of the above

Description : The additional capital used per unit of additional production is called a. Induced investment b. Autonomous investment c. Incremental COR d. None of the above

Last Answer : : c. Incremental COR COR refers to the number of units of capital required to produce one unit of output.

The investment by government to create socio-economic infrastructure is a. Induced investment b. Autonomous investment c. Incremental COR d. None of the above

Description : The investment by government to create socio-economic infrastructure is a. Induced investment b. Autonomous investment c. Incremental COR d. None of the above

Last Answer : b. Autonomous investment Autonomous investment is made by the government. Welfare rather than profit is the primary objective here.

By whom was the autonomous investment separated from induced investment ? (1) Schumpeter (2) Malthus (3) Joan Robinson (4) Adam Smith

Description : By whom was the autonomous investment separated from induced investment ? (1) Schumpeter (2) Malthus (3) Joan Robinson (4) Adam Smith

Last Answer : Schumpeter

Multiplier process in economic theory is conventionally taken to mean: (1) the manner in which prices increase (2) the manner in which banks create credit (3) income of an economy grows on account of an initial investment (4) the manner in which government expenditure increases

Description : Multiplier process in economic theory is conventionally taken to mean: (1) the manner in which prices increase (2) the manner in which banks create credit (3) income of an economy grows on account of an initial investment (4) the manner in which government expenditure increases

Last Answer : (3) income of an economy grows on account of an initial investment Explanation: In economics, a multiplier is a factor of proportionality that measures how much an endogenous variable changes in response to a change in ... of the U.S. money supply, and MO as a measure of the U.S. monetary base.

If an increase in investment leads to a bigger increase in national income (a) Accelerator (b) Aggregate demand © Monetarism (d) Multiplier

Description : If an increase in investment leads to a bigger increase in national income (a) Accelerator (b) Aggregate demand © Monetarism (d) Multiplier

Last Answer : (d) Multiplier

Multiplier process in economic theory is conventionally taken to mean : (1) the manner in which prices increase (2) the manner in which banks create credit (3) income of an economy grows on account of an initial investment (4) the manner in which government expenditure increases

Description : Multiplier process in economic theory is conventionally taken to mean : (1) the manner in which prices increase (2) the manner in which banks create credit (3) income of an economy grows on account of an initial investment (4) the manner in which government expenditure increases

Last Answer : income of an economy grows on account of an initial investment 

On the basis of the Keynesian model of output determination, a multiplier of 3 implies that (a) An increase in consumption by `3 will result in an increase in investment by Re. 1 (b) An increase in investment by Re. 1 will result in an increase in consumption by `3 (c) An increase in investment by Re. 1 will result in an increase in consumption by `2 (d) An increase in investment by Re. 1 will result in an increase in consumption by Re. 1

Description : On the basis of the Keynesian model of output determination, a multiplier of 3 implies that (a) An increase in consumption by `3 will result in an increase in investment by Re. 1 (b) An increase in ... 2 (d) An increase in investment by Re. 1 will result in an increase in consumption by Re. 1

Last Answer : (c) An increase in investment by Re. 1 will result in an increase in consumption by `2 

Investment and savings are kept equal through a change in the level of - (1) Consumption (2) Investment (3) Government expenditure (4) Income

Description : Investment and savings are kept equal through a change in the level of - (1) Consumption (2) Investment (3) Government expenditure (4) Income

Last Answer : (1) Consumption Explanation: Desired savings are kept equal to desired investment by responses to interest rate changes. Savings identity or the savings investment identity is a concept in ... brings savings and investment into balance without any intention by business to increase investment.

Investment and savings are kept equal through a change in the level of (1) Consumption (2) Investment (3) Government expenditure (4) Income

Description : Investment and savings are kept equal through a change in the level of (1) Consumption (2) Investment (3) Government expenditure (4) Income

Last Answer : Consumption

Interaction of Multiplier and accelerator is known as (a) Investment Multiplier (b) Employment Multiplier (c) Super Multiplier (d) Dynamic Multiplier

Description : Interaction of Multiplier and accelerator is known as (a) Investment Multiplier (b) Employment Multiplier (c) Super Multiplier (d) Dynamic Multiplier

Last Answer : (c) Super Multiplier

.Induced investment depends on (a) Price level and rate of interest (b) Level of income and rate of interest © Level of employment and wage rate (d) Price level and wage rate.

Description : .Induced investment depends on (a) Price level and rate of interest (b) Level of income and rate of interest © Level of employment and wage rate (d) Price level and wage rate.

Last Answer : (b) Level of income and rate of interest

Which of the following relations always holds true? (1) Income = Consumption + Investment (2) Income = Consumption + Saving (3) Saving = Investment (4) Income = Consumption + Saving + Investment

Description : Which of the following relations always holds true? (1) Income = Consumption + Investment (2) Income = Consumption + Saving (3) Saving = Investment (4) Income = Consumption + Saving + Investment

Last Answer : (2) Income = Consumption + Saving Explanation: Consumers do one of two things with their disposable income: They save it or they spend it. So Income = Consumption + Saving.

Consumptions function refers to - (1) relationship between income and employment (2) relationship between savings and investment (3) relationship between input and output (4) relationship between income and consumption

Description : Consumptions function refers to - (1) relationship between income and employment (2) relationship between savings and investment (3) relationship between input and output (4) relationship between income and consumption

Last Answer : (4) relationship between income and consumption Explanation: The Consumption function is a single mathematical function used to express consumer spending. It was developed by John Maynard Keynes and ... by current income and induced consumption that is influenced by the economy's income level.

Consumption function expresses the relationship between consumption and - (1) savings (2) income (3) investment (4) price

Description : Consumption function expresses the relationship between consumption and - (1) savings (2) income (3) investment (4) price

Last Answer : (2) income Explanation: The consumption function is a mathematical formula laid out by famed economist John Maynard Keynes. The formula was designed to show the relationship between real disposable ... being what Keynes considered the most important determinant of short-term demand in an economy.

Which of the following relations always holds true ? (1) Income = Consumption + Investment (2) Income = Consumption + Saving (3) Saving = Investment (4) Income = Consumption + Saving + Investment

Description : Which of the following relations always holds true ? (1) Income = Consumption + Investment (2) Income = Consumption + Saving (3) Saving = Investment (4) Income = Consumption + Saving + Investment

Last Answer : Income = Consumption + Saving

Consumption function expresses the relationship between consumption and (1) savings (2) income (3) investment (4) price

Description : Consumption function expresses the relationship between consumption and (1) savings (2) income (3) investment (4) price

Last Answer : income

Consumptions function refers to (1) relationship between income and employment (2) relationship between savings and investment (3) relationship between input and output (4) relationship between income and consumption

Description :  Consumptions function refers to (1) relationship between income and employment (2) relationship between savings and investment (3) relationship between input and output (4) relationship between income and consumption

Last Answer : relationship between income and consumption

'Gresham's Law' in Economics relates to (1) supply and demand (2) circulation of currency (3) consumption of supply (4) distribution of goods and services

Description : 'Gresham's Law' in Economics relates to (1) supply and demand (2) circulation of currency (3) consumption of supply (4) distribution of goods and services

Last Answer : (2) circulation of currency Explanation: Gresham's law is an economic principle that states: "When a government compulsorily overvalues one type of money and undervalues another, the undervalued money will leave ... will flood into circulation." It is commonly stated as: "Bad money drives out good."

Article 257 of the Constitution relates specifically to Jammu and Kashmir. According to the Article when the people of Jammu and Kashmir accede to Pakistan then: A. They shall become citizens of independent Kashmir B. Kashmir shall become a province of Pakistan C. People of Kashmir shall determine the relationship between the state and Pakistan D. Kashmir shall become an autonomous region

Description : Article 257 of the Constitution relates specifically to Jammu and Kashmir. According to the Article when the people of Jammu and Kashmir accede to Pakistan then: A. They shall become ... shall determine the relationship between the state and Pakistan D. Kashmir shall become an autonomous region

Last Answer : ANSWER: C

Article 257 of the Constitution relates specifically to Jammu and Kashmir. According to the Article when the people of Jammu and Kashmir accede to Pakistan then: A. They shall become citizens of independent Kashmir B. Kashmir shall become a province of Pakistan C. People of Kashmir shall determine the relationship between the state and Pakistan D. Kashmir shall become an autonomous region

Description : Article 257 of the Constitution relates specifically to Jammu and Kashmir. According to the Article when the people of Jammu and Kashmir accede to Pakistan then: A. They shall become ... shall determine the relationship between the state and Pakistan D. Kashmir shall become an autonomous region

Last Answer : ANSWER: C

Article 257 of the Constitution relates specifically to Jammu and Kashmir. According to the Article when the people of Jammu and Kashmir accede to Pakistan then: A. They shall become citizens of independent Kashmir B. Kashmir shall become a province of Pakistan C. People of Kashmir shall determine the relationship between the state and Pakistan D. Kashmir shall become an autonomous region

Description : Article 257 of the Constitution relates specifically to Jammu and Kashmir. According to the Article when the people of Jammu and Kashmir accede to Pakistan then: A. They shall become ... shall determine the relationship between the state and Pakistan D. Kashmir shall become an autonomous region

Last Answer : ANSWER: C

Article 257 of the Constitution relates specifically to Jammu and Kashmir. According to the Article when the people of Jammu and Kashmir accede to Pakistan then: A. They shall become citizens of independent Kashmir B. Kashmir shall become a province of Pakistan C. People of Kashmir shall determine the relationship between the state and Pakistan D. Kashmir shall become an autonomous region

Description : Article 257 of the Constitution relates specifically to Jammu and Kashmir. According to the Article when the people of Jammu and Kashmir accede to Pakistan then: A. They shall become ... shall determine the relationship between the state and Pakistan D. Kashmir shall become an autonomous region

Last Answer : ANSWER: C

According to Keynes, business cycles are due to variation in the rate of investment caused by fluctuations, in the - (1) Marginal efficiency of capital (2) Marginal propensity to save (3) Marginal propensity to consumption (4) Marginal efficiency to investment

Description : According to Keynes, business cycles are due to variation in the rate of investment caused by fluctuations, in the - (1) Marginal efficiency of capital (2) Marginal propensity to save (3) Marginal propensity to consumption (4) Marginal efficiency to investment

Last Answer : (1) Marginal efficiency of capital Explanation: According to Keynes' General Theory of Employment, Interest, and Money,' business cycles are caused by variations in the rate of investment ... efficiency of capital. Marginal efficiency of capital means the expected profits from new investments.

According to Keynes, business cycles are due to variation in the rate of investment caused by fluctuations , in the (1) Marginal efficiency of capital (2) Marginal propensity to save (3) Marginal propensity to consumption (4) Marginal efficiency to investment

Description : According to Keynes, business cycles are due to variation in the rate of investment caused by fluctuations , in the (1) Marginal efficiency of capital (2) Marginal propensity to save (3) Marginal propensity to consumption (4) Marginal efficiency to investment

Last Answer : Marginal efficiency of capital

The "actual"• value of the variables like consumption, investment, output, etc, is known as: a) ex post measures b) ex ante measures c) ex pre measures d) none of the above

Description : The "actual"• value of the variables like consumption, investment, output, etc, is known as: a) ex post measures b) ex ante measures c) ex pre measures d) none of the above

Last Answer : b) ex ante measures 4) What is "mps"• or the 'marginal propensity t

The "planned"• value of the variables like consumption, investment, output, etc, is known as: a) ex post measures b) ex ante measures c) ex pre measuresd) none of the above

Description : The "planned"• value of the variables like consumption, investment, output, etc, is known as: a) ex post measures b) ex ante measures c) ex pre measures d) none of the above

Last Answer : a) ex post measures

What is the term in economics for the consumption of fixed capital? a) Investment b) Value added c) Production flow d) Depreciation

Description : What is the term in economics for the consumption of fixed capital? a) Investment b) Value added c) Production flow d) Depreciation

Last Answer : d) Depreciation

The theory of distribution relates to which of the following? (1) The distribution of assets (2) The distribution of income (3) The distribution of factor payments (4) Equality in the distribution of the income and wealth

Description : The theory of distribution relates to which of the following? (1) The distribution of assets (2) The distribution of income (3) The distribution of factor payments (4) Equality in the distribution of the income and wealth

Last Answer : (4) Equality in the distribution of the income and wealth Explanation: In economics, distribution theory is the systematic attempt to account for the sharing of the national income among ... production? Third, how is the national income distributed proportionally among the factors of production?

The theory of distribution relates to which of the following? (1) The distribution of assets (2) The distribution of income (3) The distribution of factor payments (4) Equality in the distribution of the income and wealth

Description : The theory of distribution relates to which of the following? (1) The distribution of assets (2) The distribution of income (3) The distribution of factor payments (4) Equality in the distribution of the income and wealth

Last Answer :  Equality in the distribution of the income and wealth

Marginal Propensity to Consume is (a) Increase in consumption due to one unit increase in income. (b) Total consumption divided by total income. © Both (a) and (b). (d) Neither (a) nor (b).

Description : Marginal Propensity to Consume is (a) Increase in consumption due to one unit increase in income. (b) Total consumption divided by total income. © Both (a) and (b). (d) Neither (a) nor (b).

Last Answer : (a) Increase in consumption due to one unit increase in income.

Ceteris paribus, an income tax (a) Increases the value of the expenditure multiplier and decreases the value of the net tax revenue multiplier; (b) Decreases the value of the expenditure and net tax revenue multiplier; (c) Decreases the value of the expenditure multiplier and increases the value of the net tax revenue multiplier ; (d) None of the above.

Description : Ceteris paribus, an income tax (a) Increases the value of the expenditure multiplier and decreases the value of the net tax revenue multiplier; (b) Decreases the value of the expenditure and net tax ... multiplier and increases the value of the net tax revenue multiplier ; (d) None of the above.

Last Answer :  (b) Decreases the value of the expenditure and net tax revenue multiplier;

Where is Wildlife Institute of India (WII) which is an autonomous institution under the Ministry of Environment Forest and Climate change based? a. Leh, Jammu & Kashmir b. Darjeeling, West Bengal c. Shimla, Himachal Pradesh d. Dehradun, Uttarakhand

Description : Where is Wildlife Institute of India (WII) which is an autonomous institution under the Ministry of Environment Forest and Climate change based? a. Leh, Jammu & Kashmir b. Darjeeling, West Bengal c. Shimla, Himachal Pradesh d. Dehradun, Uttarakhand

Last Answer : d. Dehradun, Uttarakhand

The Psychological law of consumption states that – (1) proportionate increase in consumption is less than proportionate increase in income (2) increase in income is equal to increase in consumption (3) increase in consumption is greater than increase in income (4) consumption does not change with a change in income

Description : The Psychological law of consumption states that - (1) proportionate increase in consumption is less than proportionate increase in income (2) increase in income is equal to increase in consumption (3) ... is greater than increase in income (4) consumption does not change with a change in income

Last Answer : (1) proportionate increase in consumption is less than proportionate increase in income Explanation: According to Keynes' psychological law of consumption, increased aggregate consumption due to increased ... demand of the people are already fulfilled, they start saving the extra additional income.

Average propensity to consume is defined as - (1) Aggregate consumption +Total population (2) Aggregate income ÷ Aggregate consumption (3) Change in consumption ÷ Change in income (4) Aggregate consumption +Aggregate income

Description : Average propensity to consume is defined as - (1) Aggregate consumption +Total population (2) Aggregate income ÷ Aggregate consumption (3) Change in consumption ÷ Change in income (4) Aggregate consumption +Aggregate income

Last Answer : (4) Aggregate consumption +Aggregate income Explanation: In economics, the average propensity to consume (APC) is defined as the ratio of aggregate or total consumption to aggregate income in a given ... propensity to consume, for any income level, may be found by dividing consumption by income.

A price consumption curve, traces the utility maximizing combination of two goods when (a) the price of one good changes (b) the consumer’s preference change © the consumer’s income changes (d) the demand curve for one of the goods shifts rightward

Description : A price consumption curve, traces the utility maximizing combination of two goods when (a) the price of one good changes (b) the consumer’s preference change © the consumer’s income changes (d) the demand curve for one of the goods shifts rightward

Last Answer : (a) the price of one good changes

The marginal propensity to consume is equal to (a) Total spending/Total consumption (b) Total consumption/ Total income. © Change in consumption/ Change in income (d) Change in consumption/ Change in savings.

Description : The marginal propensity to consume is equal to (a) Total spending/Total consumption (b) Total consumption/ Total income. © Change in consumption/ Change in income (d) Change in consumption/ Change in savings.

Last Answer : © Change in consumption/ Change in income

The Psychological law of consumption states that (1) proportionate increase in consumption is less than proportionate increase in income (2) increase in income is equal to increase in consumption (3) increase in consumption is greater than increase in income (4) consumption does not change with a change in income

Description : The Psychological law of consumption states that (1) proportionate increase in consumption is less than proportionate increase in income (2) increase in income is equal to increase in consumption (3) ... is greater than increase in income (4) consumption does not change with a change in income 

Last Answer : proportionate increase in consumption is less than proportionate increase in income

Which of the following issue relates to micro-economics (a) Impact of crude price hike on inflation (b) Impact of change in bank rate on bank saving and investment (c) Impact of Information technology on economic growth (d) Impact of shortage of wheat production on wheat prices

Description : Which of the following issue relates to micro-economics (a) Impact of crude price hike on inflation (b) Impact of change in bank rate on bank saving and investment (c) Impact of Information technology on economic growth (d) Impact of shortage of wheat production on wheat prices

Last Answer : (d) Impact of shortage of wheat production on wheat prices 

Goods which are meant either for consumption or for investment are called - (1) Final goods (2) Giffen goods (3) Inferior goods (4) Intermediate goods

Description : Goods which are meant either for consumption or for investment are called - (1) Final goods (2) Giffen goods (3) Inferior goods (4) Intermediate goods

Last Answer : (1) Final goods Explanation: All goods which are meant either (i) for consumption by consumers or (ii) for investment by firms are called final goods. They are finished goods, meant for final ... stages of production. Cars, television sets, cloth, food, machinery, equipments etc. are final goods.

An economy is in equilibrium when - (1) planned consumption exceeds planned saving (2) planned consumption exceeds planned investment (3) intended saving equals intended investment (4) intended investment exceeds intended savings

Description : An economy is in equilibrium when - (1) planned consumption exceeds planned saving (2) planned consumption exceeds planned investment (3) intended saving equals intended investment (4) intended investment exceeds intended savings

Last Answer : (3) intended saving equals intended investment Explanation: In economics, economic equilibrium is a state of the world where economic forces are balanced and in the absence of external influences ... and intended investment. An economy is in equilibrium when total savings equal total investment.

Payment of water charges by the farmers to the government represents - (1) intermediate consumption (2) final consumption (3) fixed investment (4) inventory investment

Description : Payment of water charges by the farmers to the government represents - (1) intermediate consumption (2) final consumption (3) fixed investment (4) inventory investment

Last Answer : (1) intermediate consumption Explanation: Intermediate consumption is an accounting concept which measures the value of the goods and services consumed as inputs by a process of production. It excludes fixed assets whose ... .g. bulk sugar) or completely used up (e.g. electric power, water, etc).

Steel sheets used in the production of furnitures is an example of (1) an intermediate good (2) a final good (3) an investment good (4) a consumption good

Description : Steel sheets used in the production of furnitures is an example of (1) an intermediate good (2) a final good (3) an investment good (4) a consumption good

Last Answer : (1) an intermediate good Explanation: Intermediate goods are semifinished products are goods that are used as inputs in the production of oilier goods including final goods. It comprises material or ... , intermediate goods either become part of the final product, or are changed beyond recognition.

Which of the following does not cause a shift in aggregate demand ? (a) Consumption (b) Government expenditure (c) Investment (d) Prices

Description : Which of the following does not cause a shift in aggregate demand ? (a) Consumption (b) Government expenditure (c) Investment (d) Prices

Last Answer : (d) Prices

Steel sheets used in the production of furnitures is an example of (1) an intermediate good (2) a final good (3) an investment good (4) a consumption good

Description : Steel sheets used in the production of furnitures is an example of (1) an intermediate good (2) a final good (3) an investment good (4) a consumption good

Last Answer : an intermediate good

An economy is in equili-brium when (1) planned consumption exceeds planned saving (2) planned consumption exceeds planned investment (3) intended investment equals intended investment (4) intended investment exceeds intended savings

Description : An economy is in equili-brium when (1) planned consumption exceeds planned saving (2) planned consumption exceeds planned investment (3) intended investment equals intended investment (4) intended investment exceeds intended savings

Last Answer : intended investment equals intended investment