Plus Two Economics Chapter 10 – Online Practice Exam in English

# Plus Two Economics Chapter 10 – Online Practice Exam in English

## Income Determination

Chapter 11 Income Determination

# Question

1) One among the following is not a characterestic of Keynesian consumption function:

The aggregate real consumption consumption expenditure is a stable function of real income

The MPC must lie in between zero and one

The consumption is a function of rate of interest

MPC = 1 – MPS

# Question

2) If the value of MPC in an economy is unity, the value of MPS will be

One

Zero

Infinity

Two

# Question

3) If all the people of the economy increase the proportion of income they save, the aggregate savings in the economy will not increase. This phenomenon is known as

# Question

4) Among the following, choose the one which represent the multiplier:

5) MPC =

# Question

6) Match the following

A B
1) i MPS
2)Consumption when income is zero ii Multiplier
3) iii MPC
4) iv Autonomous consumption

1)iii, 2)iv, 3)i, 4)ii

1)ii, 2)iii, 3)i, 4)iv

1)i, 2)iii, 3)iv, 4)ii

1)iv, 2)iii, 3)i, 4)ii

# Question

7) MPC increases , equilibrium income will

Increase

Decrease

remain same

None of these

# Question

8) In the given equation C = 100 + .8y, MPC is

100

100 + .8y

.8

100.8y

# Question

9) In the equation AD =Ᾱ+cY, if investment increases the aggregate demand curve will shift

Parallally upwards

Parallally downwards

pivot upward

pivot downward

# Question

10) In a two  sector model, equilibrium income equals

None of these

# Question

11) Ex Ante values are called

Planned values

Actual values

Realized values

Actual and realised values

# Question

12) MPS is 0.25,  then multiplier is

1

0.75

1.33

4

# Question

13) MPC + ___ = 1

MPC

MPS

MEC

None of these

# Question

14) At equilibrium AD = __

DD

C

I

AS

# Question

15) C = 20 + 0.8Y, if  income = 100, then consumption will be

10

80

100

20

# Question

16) MPC is 0.8, then MPS is

1

.2

2

.8

# Question

17) Change in graph due to the change in parameters is called

Parametric shift

Movement along the curve

Expansion

Contraction

# Question

18) y = a + bx is a

Linear equation

Rational equation

None of these

# Question

19) MPS = 1 – ___

MEC

MPC

MPS

Consumption

# Question

20) Find odd-one

Consumption demand

Investment demand

Derived demand

Government demand

# Feedback

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