Determination of Income and Employment | Chapter 4 | Class 12 | Social Science | Economics

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In this test paper, we will practice our learning of Determination of Income and Employment | Chapter 4 | Class 12 | Social Science | Economics. These MCQ questions are prepared Based on latest exam Pattern for General Studies and GK preparation of SSC, NDA, CDS, UPSC, UPPSC and State PSC Examinations.

In this test paper, we will practice our learning of Determination of Income and Employment | Chapter 4 | Class 12 | Social Science | Economics. These MCQ questions are prepared Based on latest exam Pattern for General Studies and GK preparation of SSC, NDA, CDS, UPSC, UPPSC and State PSC Examinations.

Questions

1. What is the shape of the Keynesian Aggregate Supply before the level of full employment is attained?

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2. According to classical economists, real wage rate is ______ to the Marginal Productivity of Labour.

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3. What is the cause of Keynesian perfectly elastic Aggregate Supply curve?

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4. According to classical economists, there always exists ______ equilibrium in the economy.

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5. What will be APC when APS = 0?

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6. If the income is ₹ 400 crores and consumption is ₹ 250 crores, what will be the APC?

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7. What is a fiscal measure of correcting deficient demand?

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8. Which is the measure of correcting excess demand?

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9. Suppose in a hypothetical economy, the income rises from ₹ 5,000 crores to ₹ 6,000 crores. As a result, the consumption expenditure rises from ₹ 4,000 crores to ₹ 4,600 crores. Marginal propensity to consume in such a case would be ______

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10. On the basis of government law, the compulsory payment made by the public is known as _________

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11. Which among is the direct tax?

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12. The value of multiplier is:

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13. If MPC = 1, the value of the multiplier is:

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14. Aggregate demand can be increased by:

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15. If the marginal propensity to consume is greater than the marginal propensity to save, the value of the multiplier will be

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16. Supply creates its own Demand. Who gave this law?

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17. Who is the author of the book ‘General Theory of Employment, Interest, and Money’?

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18. Which of the following is true for the Classical Theory of Employment?

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19. On which factor Keynesian Theory of Employment depends?

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20. Which is the determining factor for investment?

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21. According to Keynes, investment implies:

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22. With the increase in investment, MEC:

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23. Which of the following is a Read Investment?

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24. APC + APS = ?

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25. MPC = MPS = ?

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26. Which or is true?

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27. The main component of aggregate demand is:

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28. Who is the writer of the book, “Trained Economic Politique”?

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29. IF MPC = 0.5, then Multiplier (k) will be:

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30. On which concept does classical viewpoint depend?

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31. “Wage cut maintains full employment in the economy.” Who put forward this view?

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32. Which one of the following is the determining factor of Equilibrium Income is the Keynesian Viewpoint?

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33. In Keynesian viewpoint, the equilibrium level of income and employment in the economy will be established where:

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34. According to the saving-investment viewpoint, income employment equilibrium will be determined at a point where:

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35. An increase in aggregate demand of equilibrium level of income and employment causes an increase in:

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36. Which one is correct?

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37. Keynes theory is associated with :

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38. Keynesian multiplier establishes a relationship between:

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39. Which one is correct?

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40. Multiplier can be expressed as:

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41. Keynes derived Investment Multiplier from Kahn’s :

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42. The value of Keynesian Investment Multiplier depends on:

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43. Which factor affects Keynesian Multiplier?

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44. Which of the following is correct?

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45. The value of MPC is:

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46. If MPC = 0.5, then multiplier (K) will be:

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47. If MPC = 0.5 and initial investment is 100 Rs crores, the income generation in the economy will be :

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48. ‘The theory of employment multiplier was propounded by:

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49. If income equilibrium level in the economy is determined at the level before full employment, it is known as the state of:

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50. In Keynesian economics, the state of Deficit Demand is called as:

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51. What are the characteristics of Deficit Demand?

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52. Deflationary Gap shows the measurement of:

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53. Which one is the reason for appearing Deficit Demand condition?

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54. Which of the following is true?

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55. The ‘difference between the Aggregate Demand at above full employment and Aggregate Demand at full employment is known as:

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56. Which of the following is a reason for surplus demand?

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57. In the situation of the deflationary gap:

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58. Which of the following causes the trade cycle?

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59. Which one is the corrective measure for Deficient Demand?

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60. Which measure is included in Fiscal Measures?

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61. Which fiscal measure should be adopted for correcting Deficient Demand?

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62. With which component of Monetary Policy, Central Bank tries to attain economic stability in the country?

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63. Which method Central Bank adopts for controlling quantitative credit?

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64. Which is a qualitative method of controlling credit?

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65. Which monetary measure may be adopted to correct Deficient Demand?

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66. Which fiscal measure is to be adopted in correcting the Inflationary Gap?

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67. Which monetary measure is to be adopted in correcting Inflationary

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68. Income and employment are determined by:

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69. The relation between consumption and savings are:

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70. When an economy they’re to save all its extra income then investment calculation will be:

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71. “Supply creates its own demand”. This statement was given by the economist:

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72. The classical theory is based on the assumption of:

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