Economic Growth and National Income CDS Questions

CDS Economy

Economic Growth and National Income MCQ Questions


7.
The value of Marginal Propensity to Consume (MPC) lies between:
A.
0 and 2
B.
0 and 1
C.
1 and 2
D.
-1 and 1
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ANSWER :
B. 0 and 1
8.
Autonomous consumption refers to:
A.
Consumption dependent on income
B.
Consumption independent of income
C.
Savings independent of income
D.
Savings dependent on income
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ANSWER :
B. Consumption independent of income
9.
Investment decisions by producers primarily depend on:
A.
Savings rate
B.
Marginal propensity to consume
C.
Market rate of interest
D.
Government policies
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ANSWER :
C. Market rate of interest
10.
The multiplier effect is directly influenced by:
A.
Marginal propensity to save
B.
Marginal propensity to consume
C.
Aggregate demand
D.
Autonomous expenditure
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ANSWER :
B. Marginal propensity to consume
11.
In the two-sector model, aggregate demand is the sum of:
A.
Consumption and investment
B.
Savings and investment
C.
Consumption and government expenditure
D.
Investment and savings
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ANSWER :
A. Consumption and investment
12.
Ex ante measures in macroeconomics refer to:
A.
Planned values
B.
Actual values
C.
Past values
D.
Excess demand
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ANSWER :
A. Planned values