CBSE Class 12 Economics Determination of Income and Employment MCQs Set B

Question. If saving function of an economy is S = -50 + 0.25 Y, then the value of MPC is——-
a- 0.25
b- 1.25
c- (-0.25)
d- 0.75

Answer : D

Question. The ratio of change in saving and change in Income is———————-
a- MPC
b- APC
c- MPS
d- APS

Answer : C

Question. When MPC is increasing in the economy, the rate of investment multiplier will———
a- Rise
b- Fall
c- Either rise or fall
d- Neither rise nor fall

Answer : A

Question. If consumption expenditure is equal to the national income, then APS will be?
a- 1
b- o
c- (-1)
d- infinity

Answer : B

Question. If the value of APC is greater than one, APS will be?
a- Negative
b- Zero
c- Greater than one
d- None of the options

Answer : A

Question. Which of the followings value may be negative?
a- MPC
b- MPS
c- APS
d- APC

Answer : C

Question. When MPS value is 0.25 , the value of investment multiplier will be?
a- 1.33
b- 2
c- 5
d- 4

Answer : D

Question. Maximum value of investment multiplier is————- when the value of MPC————
a- Ten, zero
b- infinity, one
c- infinity, zero
d- none of the options

Answer : B

Question. Multiplier is —————— related to the MPS.
a- Negatively
b- directly
c- not
d- rarely

Answer : A

Question. In an economy investment increase by 100 Crores , and MPC is 0.57 , then National income will increase by———-
a- 500
b- 250
c- 570
d- 400

Answer : D