Description : Per capita income is calculated by dividing total national income by (a) Total population (b) Total savings © Total depreciation (d) Total investment.
Last Answer : (a) Total population
Description : Classical economists’ neglects---- side in their theories. (a) demand (b) supply © savings (d) investment
Last Answer : (a) demand
Description : Savings represent (a) An injection to the circular flow of income (b) A withdrawal into the circular flow © Both an injection and a withdrawal (d) None of the above.
Last Answer : (b) A withdrawal into the circular flow
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
Description : What base year is used to calculate per capita income in India? (a) 2004-05 (b) 2011-12 © 2001-02 (d) 2014-15
Last Answer : (b) 2011-12
Description : According to Acceleration principle investment depends on change in the level of------ (a) rate of interest. (b) level of income. © price (d) saving.
Last Answer : (b) level of income.
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
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
Description : An increase in investment is caused by (a) Lower interest rates (b) Expectations of lower national income © A decrease in the marginal propensity to consume (d) An increase in withdrawals
Last Answer : (a) Lower interest rates
Description : n the simple Keynesian model investment is (a) Fixed. (b) A function of level of income. © Either fixed or a function of level of income. (d) None of the above.
Last Answer : © Either fixed or a function of level of income.
Description : Which of the following statement is inconsistent with Say's Law (a) The economy has flexible wages and prices. (b) The economy's level of investment solely depends on the level of income. © The ... produce at full employment level of output. (d) The economy has an environment of laissez faire .
Last Answer : (b) The economy’s level of investment solely depends on the level of income.
Description : Keynesian theory of investment is known as ----- (a) Marginal Efficiency of Capital Theory. (b) Marginal Efficiency of Investment Theory. © Optimum Stock of Capital Theory. (d) Actual Stock of Capital Theory.
Last Answer : (b) Marginal Efficiency of Investment Theory.
Description : The difference between gross investment and net investment is (a) Depreciation (b) Acceleration © Deceleration (d) Capital investment
Last Answer : (a) Depreciation
Description : A profit maximizing firm will invest up to the level of investment where (a) The cost of borrowing equals marginal efficiency of capital (b) The cost of borrowing is greater than marginal ... marginal efficiency of capital (d) The cost of borrowing is equal to marginal propensity to consume.
Last Answer : (a) The cost of borrowing equals marginal efficiency of capital
Description : What is the average calorie intake of rural India for measuring poverty line? (a) 2400 calories per person per day. (b) 2800 calories per person per day. © 2100 calories per person per day. (d) None of these.
Last Answer : (a) 2400 calories per person per day.
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.
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
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.
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.
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
Description : Investment multiplier shows the effect of investment on (1) Employment(2) Savings (3) Income (4) Consumption
Last Answer : Income
Description : Consumption function expresses the relationship between consumption and (1) savings (2) income (3) investment (4) price
Last Answer : income
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
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
Description : In India agricultural income is calculated by (a) Income method (b) Output method © Expenditure method (d) None of them.
Last Answer : (b) Output method
Description : An increase in interest rates (a) is likely to reduce savings (b) is likely to reduce external value of currency © Leads to a shift in the MEC schedule (d) Leads to a movement along MEC schedule.
Last Answer : (d) Leads to a movement along MEC schedule
Description : An increase in marginal propensity to consume will (a) Lead to the consumption function becoming steeper. (b) Shift the consumption function upwards. © Shift the consumption function downwards. (d) Shift the savings function upwards.
Last Answer : d) Lead to the consumption function becoming steeper.
Description : An indifference curve measures the same level of - (1) Output from two factors (2) Satisfaction from two commodities (3) Satisfaction from Income and Capital (4) Satisfaction from expenditure and savings
Last Answer : (2) Satisfaction from two commodities Explanation: An indifference curve is a locus of combinations of goods which derive the same level of satisfaction. so that the consumer is indifferent ... of various points showing different combinations of two goods providing equal utility to the consumer
Description : Capital formation in an economy depends on - (1) Total Income (2) Tot al demand (3) Total savings (4) Total production
Last Answer : (3) Total savings Explanation: Capital formation refers to capital accumulation, referring to the total "stock of capital" that has been formed, or to the growth of this total capital stock. ... a measure of the amount by which the total physical capital stock increased during an accounting period.
Description : Capital formation in an economy depends on (1) Total Income (2) Total demand (3) Total savings (4) Total production
Last Answer : Total savings
Description : An indifference curve measures the same level of (1) Output from two factors (2) Satisfaction from two commodities (3) Satisfaction from Income and Capital (4) Satisfaction from expenditure and savings
Last Answer : Satisfaction from two commodities
Description : Which one of the following is not a method for computing GNP? (1) Income Approach (2) Expenditure Approach (3) Savings Approach (4) Value Added Approach
Last Answer : (1) Income Approach Explanation: Gross National Product (GNP) can be defined as an economic statistic which includes Gross Domestic Product, plus any income earned by the residents from investments ... foreign countries by the residents of a country - income earned by nonresidents in that country.
Description : Which one of the following is not a method for computing GNP ? (1) Income Approach (2) Expenditure Approach (3) Savings Approach (4) Value Added Approach
Last Answer : Income Approach
Description : Which of the following is not a component of GDP? (a) Government spending (b) Investment © Interest (d) Net exports
Last Answer : © Interest
Description : The cost of borrowing is equal to marginal propensity to consume. 21. Investment is (a) An injection that increases aggregate demand (b) An withdrawal that increases aggregate demand © An injection that decreases aggregate demand (d) An withdrawal that decreases aggregate demand
Last Answer : a) An injection that increases aggregate demand
Description : .An increases in investment is most likely to be caused by (a) Lower interest rates (b) Expectations of lower national incomes © A decrease in the marginal propensity to consume (d) An increase in withdrawals.
Description : To calculate index number ----- mean is used (a) arithmetic (b) geometric © harmonic (d) none of the above.
Last Answer : (b) geometric
Description : Cumulative frequency distribution is helpful to calculate----- (a) mean (b) median © mode (d) both (b) and (c).
Last Answer : (b) median
Description : Capital formation in underdeveloped countries is a major bottleneck. The reason can be a. Small size of market with no incentive for investment b. Low level of income c. Demonstration effect d. All the above
Last Answer : d. All the above Capital formation refers to investment in tools, machinery, buildings etc. inequalities in the economy is also a reason behind this.
Description : Which of the following is Stock concept ? (a) Capital (b) Investment (c) Income (d) Profit
Last Answer : (a) Capital
Description : Which among the following has the least possibility of globalization? (1) selection of labour force (2) location of capital works (3) to manage resources for investment (4) increase in infrastructure
Last Answer : (2) location of capital works Explanation: Globalization can affect the labor market by increasing capacity of developing countries to create new opportunities for work and production ... in proper shape. A welldeveloped infrastructure is an indispensable condition for faster globalization.
Description : Which among the following has the least possibility of globalisation ? (1) selection of labour force (2) location of capital works (3) to manage resources for investment (4) increase in infrastructure
Last Answer : location of capital works
Description : Which is not added in the calculation of national income in India? (a) The value of goods and services. (b) The sold value of old fridge. © Services rendered by the housewives (d) Both (b) and (c)
Last Answer : (d) Both (b) and (c)
Description : Which state in India now has the highest per capita income? (a) Goa (b) Delhi © Punjab (d) Kerala.
Last Answer : (a) Goa
Description : Which one of the following is not a method of measurement of National Income? (1) Value Added Method (2) Income Method (3) Investment Method (4) Expenditure Method
Last Answer : (3) Investment Method Explanation: Primarily there are three methods of measuring national income. The methods are product method, income method and expenditure method. Product method is given by Dr. Alfred ... properties where evidence of rates is slight, such as hotels, cinema, car park and etc.
Description : Which one of the following is not a method of measurement of National Income ? (1) Value Added Method (2) Income Method (3) Investment Method (4) Expenditure Method
Last Answer : Investment Method
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.
Description : 4. For which of the following reasons might inflation cause Real GDP to grow slower than it otherwise would? a. Inflation makes everyone poorer b. Inflation reduces the value of consumer debt c. Inflation increases business investment spending d. Inflation decreases savings in financial form
Last Answer : d. Inflation decreases savings in financial form
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
Description : Which of the following is an indicator of poverty in India? (a) Income level (b) Illiteracy level (c) Employment level (d) All of these.
Last Answer : (a) Income level