Refer to CUET Economics MCQs Unit IV Determination of Income and Employment provided below. CUET UG Economics MCQ questions with answers are available for download in Pdf. The MCQ Questions for UG Economics with answers are aligned as per the latest syllabus and exam pattern suggested in UG by CUET, NCERT and KVS. Multiple Choice Questions for Unit IV Determination of Income and Employment are an important part of exams for UG Economics and if practiced properly can help you to improve your understanding of Unit IV Determination of Income and Employment and get higher marks. Refer to more Chapter-wise MCQs for CUET UG Economics and also download more latest study material for all subjects
MCQ for UG Economics Unit IV Determination of Income and Employment
UG Economics students should refer to the following multiple-choice questions with answers for Unit IV Determination of Income and Employment in UG.
Unit IV Determination of Income and Employment MCQ Questions UG Economics with Answers
Question : According to Keynes, equality (equilibrium) between AD and AS can take place in a situation
a) Less than full employment
b) Full employment
c) Beyond full employment
d) All of these
Answer : All of these
Question : Deficient or excess demand can be corrected through
a) Fiscal Policy
b) Monetary Policy
c) Both (a) and (b)
d) None of these
Answer : Both (a) and (b)
Question : Which of the following indicates AD in an open economy?
a) Private (household) Consumption Expenditure
b) Household Investment Expenditure
c) Government expenditure + private consumption expenditure
d) Household consumption expenditure+ investment expenditure + government expenditure + net exports
Answer : Household consumption expenditure+ investment expenditure + government expenditure + net exports
Question : MPC being equal to 0.5, what will be , if income increases by Rs.100?
a) Rs. 60
b) Rs. 50
c) Rs. 40
d) Rs. 70
Answer : Rs. 50
Question : If MPC is 40 per cent, MPS will be
a) 70 percent
b) 60 percent
c) 50 percent
d) 40 percent
Answer : 60 percent
Question : If MPC = 0.9, than value of multiplier will be:
a) 6
b) 9
c) 10
d) 12
Answer : 10
Question : If an investment of Rs. 10 crore results in an increase in income by Rs 50 crore, then the multiplier will be:
a) 5
b) 4
c) 2
d) None of these
Answer : 5
Question : With a view to correcting deflationary gap or deficient demand, which of the following fiscal policy measures should be adopted ?
a) Reduction in taxes
b) Increase in public expenditure
c) Reduction in public debt
d) All of these
Answer : All of these
Question : If the value exports exceeds the value of visible imports, the current account deficit will be:
a) Positive
b) Negative
c) Positive or Negative
d) None of these
Answer : Positive or Negative
Question : Consumption function is a functional relationship between:
a) Income and saving
b) Price and consumption
c) Income and consumption
d) Income, consumption and saving
Answer : Income and consumption
Question : If MPS is 0.6,what will be ∆S when income increases by Rs.100 ?
a) Rs. 60
b) Rs. 50
c) Rs. 40
d) Rs.70
Answer : Rs. 60
Question : Multiplier=
a) ∆Y/∆S
b) ∆Y/∆I
c) ∆I/∆Y
d) ∆Y/∆C
Answer : ∆Y/∆I
Question : Which of the following leads to increase in AD ?
a) Fall in imports
b) Increase in investment expenditure
c) Increase in government expenditure
d) All of these
Answer : All of these
Question : The difference between fiscal and interest payment is called :
a) Revenue Deficit
b) Primary Deficit
c) Bbudget Deficit
d) Capital Deficit
Answer : Primary Deficit
Question : Propensity to consume means:
a) Tendency of the consumer towards higher consumption
b) Ratio of consumption to income
c) Level of income at which consumption expenditure is equal to income
d) Additional income to be spent on consumption
Answer : Ratio of consumption to income
Question : Which of the following is correct ?
a) MPC÷MPS=1
b) 1-MPC=MPS
c) 1-MPS= MPC
d) All of these
Answer : All of these
Question : Multiplier is estimated as:
a) 1/MPC
b) 1/1-MPC
c) 1/1+MPC
d) 1/1+MPS
Answer : 1/1-MPC
Question : Deflationary gap is measured as :
a) ADF + ADU
b) ADF÷ ADU
c) ADF - ADU
d) None of these
Answer : ADF- ADU
Question : Of the following, what are the quantitative measures of monetary policy ?
a) Repo rate
b) Open market operations
c) SLR
d) All of these
Answer : All of these
Question : Average propensity to consume (APC) equal to :
a)
b)
c)
d)
Answer :
Question : On account of injections and withdrawals, equilibrium level of income undergoes :
a) A shift
b) No shift
c) A dispersal
d) No change
Answer : A shift
Question : Which of the following does not lead to fall in AD ?
a) Fall in private consumption expenditure
b) Fall in export
c) Fall in Import
d) Fall in Government Expenditure
Answer : Fall in Import
Question : Average propensity (APS) is equal to:
a)
b)
c)
d)
Answer :
Question : If MPC = 0, the multiplier will be:
a) 1
b) 0
c) 2
d) X
Answer : 1
Question : A tax the burden of which can be shifted on to others, is called :
a) Indirect Tax
b) Direct Tax
c) Ad Valorem
d) Specific Tax
Answer : Indirect Tax
Question : Propensity to save means:
a) Ratio of saving to income
b) level of income at which saving is equal to income
c) Additional income that is not to be saved
d) None of these
Answer : Ratio of saving to income
Question : If MPS =1/4, the value of multiplier will be :
a) 4
b) 2
c) 8
d) 6
Answer : 4
Question : Equilibrium level of income/ output and employment is viewed from which of the following approaches ?
a) AS=AD approach
b) S=I approach
c) Both (a) and (b)
d) None of these
Answer : Both (a) and (b)
CUET Economics MCQs Unit I Introduction to Microeconomics |
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CUET UG Economics Unit IV Determination of Income and Employment MCQs
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