Economic Growth and National Income CDS Questions

CDS Economy

Economic Growth and National Income MCQ Questions


1.
What is the meaning of 'Ceteris Paribus'?
A.
All things being equal
B.
All variables constant
C.
Change in income
D.
Economic equilibrium
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ANSWER :
A. All things being equal
2.
Which economist's theory is the basis for the national income determination model discussed?
A.
Adam Smith
B.
John Maynard Keynes
C.
Milton Friedman
D.
Paul Samuelson
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ANSWER :
B. John Maynard Keynes
3.
The marginal propensity to consume (MPC) is denoted by ___.
A.
MPS
B.
C
C.
c
D.
APC
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ANSWER :
C. c
4.

Match the terms with their definitions:

List I List II
a) MPC 1.) Change in savings per unit change in income
b) MPS 2.) Change in consumption per unit change in income
c) APS 3.) Savings per unit income
d) APC 4.) Consumption per unit income
A.

a-2, b-1, c-3, d-4

B.

a-1, b-2, c-4, d-3

C.

a-3, b-4, c-1, d-2

D.

a-4, b-3, c-2, d-1

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ANSWER :

A. a-2, b-1, c-3, d-4

5.
Investment that does not depend on income is called ____.
A.
Autonomous investment
B.
Induced investment
C.
Planned investment
D.
Unplanned investment
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ANSWER :
A. Autonomous investment
6.
Which of the following represents the formula for the consumption function?
A.
C = CÌ„ + I
B.
C = CÌ„ + cY
C.
C = I + cY
D.
C = CÌ„ + G
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ANSWER :
B. C = CÌ„ + cY