CBSE Questions for Class 12 Commerce Economics Determination Of Income And Employment Quiz 2 - MCQExams.com

At $$ P_X  $$ = Rs.  5, demand for Good-X is $$30$$ units and supply of Good-X is $$20$$ units, it is a situation of:
  • excess demand.
  • excess supply.
  • equilibrium.
  • none of the above
Which of the following statements is correct, in the case of excess demand?
  • Market supply will be less than market demand
  • Equilibrium price and equilibrium quantity will increase.
  • Both (a) and (b).
  • Neither (a) nor (b).
If consumption in period 1 is Rs 5,000 and income is Rs 10,000 and the same for period 2 stands at 7,160 and 13,000 respectively, find MPC.
  • 0.72
  • 0.84
  • 0.66
  • 0.33

If income changes from 3000 to 4500 and saving changes from 600 to 900, then calculate APS?
  • 0.20
  • 0.33
  • 0.13
  • 0.25
If consumption in period 1 is 650 and income is 700 and the same for period 2 stands at 700 and 800 respectively, find MPC.
  • 0.3
  • 0.4
  • 0.5
  • 0.6
The formula for the MPC is ___________.
  • the change in consumption divided by the change in income
  • consumption divided by income
  • consumption plus saving divided by income
  • the change in income divided by the change in consumption.

If income changes from 1000 to 1500 and saving changes from 200 to 250, then calculate APS . 
  • 0.2
  • 0.16
  • 0.2 for the time period 1 and 0.16 for the time period 2
  • 0.16 for the time period 1 and 0.2 for the time period 2
If income changes from 1000 to 1500 and saving changes from 200 to 250, then calculate MPS. 
  • 0.1
  • 0.5
  • 0.6
  • 0.4
If consumption in period 1 is 200 and income is 600 and the same for period 2 stands at 300 and 750 respectively, find MPC.
  • 0.33
  • 0.44
  • 0.55
  • 0.66
If income changes from 3000 to 4500 and saving changes from 600 to 900, then calculate MPS?
  • 0.2
  • 0.1
  • 0.2 for time period 1 and 0.1 for time period 2.
  • 0.1 for time period 1 and 0.2 for time period 2.
The two approaches to determination of the equilibrium level of income are:
  • Aggregate demand-Aggregate supply approach
  • Saving-Investment approach
  • Demand-Supply approach
  • Both A & B
If MPC = 0.3 and fixed consumption is 900, write the consumption equation.
  • C = 900 = 0.3 Y
  • S = 900 + 0.3 Y
  • C = -900 + 0.6 Y
  • S = 900 - 0.6 Y
According to ______________________, equilibrium level of income and output in the economy is the one where the desired aggregate demand for goods and services is equal to aggregate supply. 
  • aggregate demand-aggregate supply approach
  • saving-investment approach
  • income-output approach
  • none of the above
Size of investment multiplier is given by the inverse of marginal propensity to save. 
  • True
  • False
In an economy, the population spends Rs 150 crore on absolute necessities needed to sustain themselves. The current income is Rs 450 crore and MPC is 0.What is the level of saving?
  • Rs 30 crore
  • Rs 270 crore
  • Rs 420 crore
  • Rs 180 crore
If MPC = 0.8 and fixed consumption is 600, write the consumption equation.
  • C = 600 + 0.8Y
  • C = 600 - 0.8Y
  • C = 600 + 0.2Y
  • C = 0.2 Y - 600
Which of the following factors don't affect the propensity to consume in an economy?
  • Rate of interest
  • Wealth
  • Taxes
  • Consumer credit
According to ________________ equilibrium level of income is determined at the level where planned investment equals planned saving.
  • aggregate demand-aggregate supply approaach
  • saving-investment approach
  • demand-supply approach
  • price-demand approach
If MPC = 0.7 and fixed consumption is 700, write the saving equation.
  • S = 700 - 0.7Y
  • S = 0.7 Y + 700
  • S = -700 + 0.3Y
  • S = 700 - 0.3Y
If MPC = 0.8 and fixed consumption is 200, write the saving equation.
  • S = -200 - 0.8Y
  • S = -200 + 0.2Y
  • S = 200 + 0.8 Y
  • S = -200 + 0.8 Y
The investment multiplier expresses the magnitude of change in investment as a result of change in income.
  • True
  • False
Aggregate demand in an economy is measured in terms of the total expenditure on goods and services.
  • True
  • False
Aggregate supply function is a ___________ curve.
  • upward sloping
  • horizontal curve, followed by a upward sloping
  • downward sloping
  • upward sloping curve at first, followed by a vertical
_____________________ is defined as the multiple amount by which income increases as a result of increase in investment expenditure.
  • Investment multiplier
  • Expenditure multiplier
  • Income multiplier
  • None of the above
The number of times income increases because of increase in investment is called multiplier.
  • True
  • False
Aggregate demand function is represented by a downward sloping curve.
  • True
  • False
When marginal propensity to consume is zero, the value of investment multiplier will also be zero.
  • True
  • False
The multiplier can be expressed algebraically as _________________.
  • $$K = \dfrac{\Delta{I}}{\Delta{Y}}$$
  • $$K = \dfrac{\Delta{AE}}{\Delta{AD}}$$
  • $$K = \dfrac{\Delta{Y}}{\Delta{I}}$$
  • $$K = \dfrac{\Delta{Y}}{\Delta{AD}}$$
_____________ refers to what the households and firms are expected to spend on the purchase of different goods and services in the economy.
  • Aggregate supply price
  • Aggregate demand price
  • Aggregate expenditure
  • None of the above
_______________ is the minimum amount of money, which all the entrepreneurs in the economy must receive from the sale of output produced by them, at any given level of employment.
  • Aggregate supply price
  • Aggregate profit
  • Aggregate demand price
  • Aggregate income
0:0:1


Answered Not Answered Not Visited Correct : 0 Incorrect : 0

Practice Class 12 Commerce Economics Quiz Questions and Answers