CBSE Questions for Class 12 Commerce Economics Determination Of Income And Employment Quiz 1 - MCQExams.com

If the ratio of marginal propensity to consume and marginal propensity to save is 4:1, the value of investment multiplier will be 4.
  • True
  • False
Due to government expenditure demand increases.
  • True
  • False
Autonomous consumption expenditure cannot be zero.
  • True
  • False
Demand curve slopes upwards from left to right.
  • True
  • False
Desire means demand.
  • True
  • False
Geometric method is also known as Point Method.
  • True
  • False
Any point on the demand curve below the equilibrium point shows _____.
  • equilibrium
  • excess demand
  • excess supply
  • none of the above
Study of how the consumer decides, given his income and many alternative goods to choose from, what to buy when he knows the prices is called study of __________.
  • consumption
  • production
  • distribution
  • none of these

Graphically, when demand curve moves upward, there is __________.
  • more demand 
  • more supply
  • equilibrium
  • none of these
The income elasticity demand for farm products is _____________.
  • high in India
  • no demand at all
  • very low in India
  • high supply and no demand
If the marginal propensity to consume is greater than marginal propensity to save, the value of the multiplier will be _______________.
  • greater than 2
  • less than 2
  • equal to 2
  • equal to 5
Autonomous consumption expenditure does not depend on income.
  • True
  • False
Autonomous consumption can be zero.
  • True
  • False
Changes in level of income and employment can be brought by changing aggregate demand.
  • True
  • False
If net income from abroad is negative it means value of exports is less than value of imports.
  • True
  • False
For open economy aggregate demand is equal to Consumption + Investment + Government expenditure.
  • True
  • False
When demand increases, the demand curve shifts to the left. 
  • True
  • False
Perfectly inelastic demand curve is ___________.
  • Flatter
  • Steeper
  • Vertical straight line parallel to $$'OY'$$ axis
  • Horizontal straight line parallel to $$'OX'$$ axis
Marginal propensity to consume refers to the effect of additional income on consumption.
  • True
  • False
What would be total consumption from the following data if disposal income is Rs. $$2000$$ and consumption function is $$C=400+0.6$$Yd.?
  • Rs. $$1200$$
  • Rs. $$1600$$
  • Rs. $$1400$$
  • Rs. $$1000$$
How is marginal propensity to consumed expressed mathematically?
  • C = c (Y 0) = c.Y
  • C = c (Y 0) = I-K
  • C = c (I Y) = c.Y
  • C = c (Y 0) k
A person spends a portion of his monthly income on his household and the rest is saved. The ratio of his expenditure and saving is 27:Find his monthly saving when his monthly expenditure is Rs. 675__.
  • 80
  • 75
  • 50
  • 150
Higher level of current consumption means ___________.
  • higher economic growth in future
  • slower economic growth in future
  • higher capital formation in future
  • no change in growth rate
 The planned values of the variables consumption, investment or output of final goods  their ex ante measures.
  • True
  • False
Which is the other name that is given to the average revenue curve?
  • Profit Curve
  • Demand Curve
  • Average Cost Curve
  • Indifference Curve
What are the accounting values of GDP called?
  • ex post
  • national income
  • probability income
  • I=S
Equilibrium price and quantity is determined by ___________.
  • Mid-point of demand curve
  • Central planning agency
  • Intersection of demand and supply curve
  • Mutual discussion of trade and consumer associations
In case of excess demand, equilibrium price must rise.
  • True
  • False
The period of time, when supply is fully adjusted to change in demand is called_________.
  • short period.
  • very short period.
  • mid period.
  • long period.
What would price ceiling lead to when the maximum price is fixed lower than the equilibrium price?
  • Excess demand.
  • Excess supply.
  • Deficient demand.
  • None of the above
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