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MCQ Questions for Class 12 Macroeconomics with Answers: Introductory Macroeconomics
Question1.
If MPC is equal to 1, the value of the multiplier is
(i) 0
(ii) 1
(iii) Between 0 and 1
(iv) Infinity
(iv) Infinity
Question2.
What is the cause of Keynesian perfectly elastic Aggregate Supply curve?
(i) Wage price rigidity
(ii) Constant Marginal Product of Labour
(iii) Both of these
(iv) None of these
(iii) Both of these
Question3.
When MPS value is 0.25 , the value of investment multiplier will be?
(i) 1.33
(ii) 2
(iii) 5
(iv) 4
(iv) 4
Question4.
Consumption function is a functional relationship between:
(i) Income and saving
(iv) Price and consumption
(iii) Income and consumption
d) Income, consumption and saving
(iii) Income and consumption
Question5.
If MPC is zero, the value of the multiplier is
(i) 0
(ii) 1
(iii) between 0 and 1
(iv) infinity
(ii) 1
Question6.
What will be APC when APS = 0?
(i) One
(ii) Zero
(iii) Two
(iv) Infinite
(i) One
Question7.
Multiplier is —————— related to the MPS.
(i) Negatively
(ii) directly
(iii) not
(iv) rarely
(i) Negatively
Question8.
MPC being equal to 0.5, what will be , if income increases by Rs.100?
(i) Rs. 60
(iv) Rs. 50
(iii) Rs. 40
d) Rs. 70
(iv) Rs. 50
Question9.
According to classical economists, there always exists an equilibrium in the economy.
(i) Full employment
(ii) Underemployment
(iii) Over full employment
(iv) None of these
(i) Full employment
Question10.
What is a fiscal measure of correcting deficient demand?
(i) Increase in public expenditure and decrease in taxes
(ii) Decrease in public debt
(iii) Deficit financing
(iv) All of these
(iv) All of these
Question11.
If consumption expenditure is equal to the national income, then APS will be?
(i) 1
(ii) o
(iii) (-1)
(iv) infinity
(ii) o
Question12.
If MPS is 0.6,what will be ∆S when income increases by Rs.100 ?
(i) Rs. 60
(iv) Rs. 50
(iii) Rs. 40
d) Rs.70
(i) Rs. 60
Question13.
What will be MPC when MPS = 0?
(i) One
(ii) Zero
(iii) Two
(iv) Infinite
(i) One
Question14.
Which is the measure of correcting excess demand?
(i) Deficit financing
(ii) Reduction in taxes
(iii) Increase in public expenditure
(iv) Increase in public debt
(iv) Increase in public debt
Question15.
When MPC is increasing in the economy, the rate of investment multiplier will———
(i) Rise
(ii) Fall
(iii) Either rise or fall
(iv) Neither rise nor fall
(i) Rise
Question16.
On account of injections and withdrawals, equilibrium level of income undergoes :
(i) A shift
(iv) No shift
(iii) A dispersal
d) No change
(iv) A shift
Question17.
If the income is ₹ 400 crores and consumption is ₹ 250 crores, what will be the APC?
(i) 0.67
(ii) 0.63
(iii) 0.60
(iv) 0.58
(ii) 0.63
Question18.
Which among is the direct tax?
(i) Income tax
(ii) Gift and Corporation tax
(iii) Wealth tax
(iv) All of these
(iv) All of these
Question19.
In an economy investment increase by 100 Crores , and MPC is 0.57 , then National income will increase by———-
(i) 500
(ii) 250
(iii) 570
(iv) 400
(iv) 400
Question20.
Multiplier=
(i) ∆Y/∆S
(iv) ∆Y/∆I
(iii) ∆I/∆Y
d) ∆Y/∆C
(iv) ∆Y/∆I
Question21.
Supply creates its own Demand. Who gave this law?
(i) J.B.Say
(ii) J.S.Mill
(iii) Keynes
(iv) Ricardo
(i) J.B.Say
Question22.
Which of the following is a Read Investment?
(i) Purchasing of a Share
(ii) Purchasing of Old Factory
(iii) Construction of Buildings
(iv) Opening Deposit Account in the Bank
(iii) Construction of Buildings
Question23.
Wage cut maintains full employment in the economy.” Who put forward this view?
(i) Pigou
(ii) Keynes
(iii) Marshall
(iv) None of the above
(i) Pigou
Question24.
An increase in aggregate demand of equilibrium level of income and employment causes an increase in:
(i) Employment
(ii) Production
(iii) Income
(iv) All of these
(iv) All of these
Question25.
Keynesian multiplier establishes a relationship between:
(i) Investment and Income
(ii) Income and Consumption
(iii) Saving and Investment
(iv) None of the above
(i) Investment and Income
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MCQ Questions for Class 12 Macro 12 with Answers: Introductory Macro 12
- Lesson 1. Introduction to Macro 12 Class 12 MCQ Questions
- Lesson 2. National Income Accounting Class 12 MCQ Questions
- Lesson 3. Money and Banking Class 12 MCQ Questions
- Lesson 4. Determination of Income and Employment Class 12 MCQ Questions
- Lesson 5. Government Budget and the Economy Class 12 MCQ Questions
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MCQ Questions for Class 12 12 Indian Economic Development with Answers
- Lesson 1. Indian Economy on the Eve of Independence Class 12 MCQ Questions
- Lesson 2. Indian Economy 1950-1990 Class 12 MCQ Questions
- Lesson 3. Liberalisation, Privatisation and Globalisation: An Appraisal Class 12 MCQ
- Lesson 4. Poverty Class 12 MCQ Questions
- Lesson 5. Human Capital Formation in India Class 12 MCQ Questions
- Lesson 6. Rural Development Class 12 MCQ Questions
- Lesson 7. Employment: Growth, Informalisation and Other Issues Class 12 MCQ
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- Lesson 10. Comparative Development Experiences of India and its Neighbours Class 12 MCQ