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Published on: 02/09/2022
QB365 provides a detailed and simple solution for every Possible Creative Questions in Class 12 Economics Subject - Consumption and Investment Functions , English Medium. It will help Students to get more practice questions, Students can Practice these question papers in addition to score best marks.
Download Tamil Nadu 12th Standard Economics question papers, model tests, one-mark questions, important questions, and public exam papers in PDF format. Free study materials and answer keys for TN State Board students.
Questions + Answers key
Take MCQ Economics Test
1.
The term consumption function explains the relationship between ___________ and ___________
Labour and Consumer
Income and Consumption
Consumer and Consumption
Organisation and Consumption
2.
MPC Stands for ___________
Marginal Physical Consumption
Marginal Propensity to Consume
Marginal Price of the Commodity
None of these
3.
According to Keynes, employment depends on ___________
savings
Income
Interest
Investment
4.
Investment is the addition to real ___________
Input
Output Asset
Capital Assets
None of these
5.
In the short run, consumption function ________________
increase
decrease
remain constant
none of these
6.
In the long run, the autonomous consumption will become _______
Maximum
Minimum
Negative
Zero
7.
__________ principle explains the relationship between consumption expenditure and capital expenditure
Multiplier
Accelerator
Super Multiplier
All the above
8.
Consumption function is the relationship ______ between and the national income.
Consumption expenditure
Government expenditure
Distribution expenditure
Investment expenditure
9.
If the MPC = 0.6, find MPS
1
0.4
0.6
2
10.
Formula for calculating Multiplier
\(K=\frac{1}{1-MPC}\)
\(\frac{ΔY}{ΔI}\)
\(\frac{1}{MPS}\)
All the above
11.
Decrease in consumption at any given level of income is likely to lead
Lower aggregate demand
An increase in exports
Higher aggregate demand
An increase in Investment
12.
If the Keynesian consumption function is C = 10 + 0.5Y then, and disposable income is 100, what is the average propensity to consume?
0.5
0.6
0.7
0.8
13.
If the Keynesian consumption function is C = 10 + 0.8Y then, if disposable income is Rs 1000, what is amount of total saving?
810
190
0.8
0.81
14.
If the Keynesian consumption function is C = 10 + 0.9Y then, if disposable income is Rs 1000, what is amount of total consumption?
0.9
800
0.91
910
15.
Higher Interest rates likely to
Reduce investment
Decrease the cost of borrowing
Discourage saving
Increase borrowing and spending
1.
(b)
Income and Consumption
2.
(b)
Marginal Propensity to Consume
3.
(d)
Investment
4.
(c)
Capital Assets
5.
(c)
remain constant
6.
(d)
Zero
7.
(b)
Accelerator
8.
(a)
Consumption expenditure
9.
(b)
0.4
10.
(a)
\(K=\frac{1}{1-MPC}\)
11.
(a)
Lower aggregate demand
12.
(b)
0.6
13.
(b)
190
14.
(d)
910
15.
(a)
Reduce investment
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