Consumption and Investment Functions One Mark Questions

12th Standard EM

    Reg.No. :
  •  
  •  
  •  
  •  
  •  
  •  

Economics

Time : 00:30:00 Hrs
Total Marks : 10
    5 x 1 = 5
  1. The average propensity to consume is measured by

    (a)

    C/Y

    (b)

    CxY

    (c)

    Y/C

    (d)

    C+Y

  2. An increase in the marginal propensity to consume will:

    (a)

    Lead to consumption function becoming steeper

    (b)

    Shift the consumption function upwards

    (c)

    Shift the consumption function downwards

    (d)

    Shift savings function upwards

  3. As increase in consumption at any given level of income is likely to lead

    (a)

    Higher aggregate demand

    (b)

    An increase in exports

    (c)

    A fall in taxation revenue

    (d)

    A decrease in import spending

  4. If the Keynesian consumption function is C = 10 + 0.5Y then, and disposable income is 100, what is the average propensity to consume?

    (a)

    0.5

    (b)

    0.6

    (c)

    0.7

    (d)

    0.8

  5. Decrease in consumption at any given level of income is likely to lead

    (a)

    Lower aggregate demand

    (b)

    An increase in exports

    (c)

    Higher aggregate demand

    (d)

    An increase in Investment

  6. 5 x 1 = 5
  7. MPC+MPS

  8. (1)

    f(r)

  9. APC

  10. (2)

    1

  11. I

  12. (3)

    Profit motive

  13. Investment that is not dependent on the national income

  14. (4)

    Average propensity to consume

  15. Induced Investment

  16. (5)

    Autonomous investment

*****************************************

TN 12th Standard EM Economics free Online practice tests

Reviews & Comments about 12th Economics Chapter 4 Consumption and Investment Functions One Mark Question and Answer

Write your Comment