Question # 1

Marginal propensity to consume MPC is.

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Total income spent on consumption

Ratio of additionalincome consumed

Ratio of total income consumed

Consumption divided by saving

Aggregate demand means.

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Aggregate saving

Aggregate Income

Aggregate investment

Aggregate expenditure

Consumption is a function of.

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Saving

Investment

Income

Expenditure

Which of the following would increase national income.

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Increase in taxation

incerese in savings

Increase in govt spending

Decrease in consumption spending

MPC is always.

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Positive

Negative

Zero

More then APC

If money supply in a country decreses

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Price will rise

Price will fall

Rate of intrese falls

B and C of above

This will cause decrease in natioal income.

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Rise in exports

Rise in saving

Increas in taxese

B and C above

Equilibrium of national income will be when

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S >I

S < I

S = I

S - 1

Which of the following is a withdrawal from the circular flow of income stream.

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Taxation

Consumption

Subsides

Investment

Which shows equilibrium of national income

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Consumption = investment

Saving = investment

Saving > investment

Saving < investment

Which one is investment in economics

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Building a factory

Buyig shares in stock exchange

Depositing money in bank

Deposting money wiht housing society

National income equals.

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c+ I+g

c-i-g

c-s-g

c+s+g

In equilibrium of nationalincome.

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S > I

S = I

S < I

All are true

GDP atconstnat prices, calculated according to some base year is called.

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acutal GDP

Real GDP

Net GDP

Nominal GDP

If C = 200 and I = 40 then Y will equal

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160

240

8000

None of the above

This wil cause anincrease in national income

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Rise in exports

Fall in consumer spending

Rise in imports

Increase in saving

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Icom Part 2 Principles of Economics Chapter 2 English Medium Online Test MCQs With Answers

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