Equilibrium of National income Test 01 Preparation Online

1. Which of the following world increase national income:

A. Increase in taxation

B. Increase in savings

C. Increase in Govt. spending

D. Decrease in consumption spending

2. Consumption is a function of:

A. Investment

B. Saving

C. Income

D. None of these

3. Which one is investment in economics ?

A. Depositing money in bank

B. Building a factory

C. Depositing money in housing society

D. Buying shares in stock exchange

4. National income equals:

A. c + t - g

B. c + s + t

C. c - t + g

D. c + 1 + t

5. To find net national product, depreciation is:

A. Added to GNP

B. Subtracted from GNP

C. Multiplied with national income

D. Has no role in national accounting

6. MPC cannot be:

A. Positive

B. More than APC

C. Zero

D. Negative

7. National income equals:

A. c + 1 + g

B. c + s + g

C. c - s - g

D. c - 1 - g

8. Aggregate demand is:

A. Aggregate saving

B. Aggregate expenditure

C. Aggregate income

D. Aggregate investment

9. Marginal propensity to consume (MPC) is:

A. Total income spent on consumption

B. Consumption divided by saving

C. Ratio of additional income consumed

D. Ratio of total income consumed

10. GDP at constant prices, calculated according to some base year is called:

A. Nominal GDP

B. Actual GDP

C. Real GDP

D. Net GDP

11. MPC is:

A. C/Y

B. Y/C

C. ?C/?Y

D. ?Y/?C

12. If C = 200 and I = 40 then Y will equal:

A. 240

B. None of these

C. 800

D. 160

13. Which of the following is a withdrawal from the circular flow of income stream:

A. Taxation

B. Investment

C. Subsidies

D. Consumption

14. Which shows equilibrium of national income :

A. Consumption = investment

B. Saving < investment

C. Saving > Investment

D. Saving = Investment

15. This may cause an increase in national income:

A. Fall in consumer spending

B. Rise in exports

C. Rise in imports

D. Increase in saving

Equilibrium of National income Test 01 Preparation Online

Leave a Reply Cancel reply