Macroeconomics

126 XIl-by Subhash

9 APCcan be zero at a particular leve of incone
10 The planed values of the variables are their
True/Falwithse?
(ex-ante/er-post) rmeasures. (Fill in the biank
111 oce to understand the determination of national
incone, we need to know tie (er-aritelerwith
(Fill in the blank
the components of aggregate demand
consurnption and incone.
12 Oescnibes the relation between independers
13 consurnption stiil takes place Since thisievei ot Consunption is
Ever f income is zero some
calied
Zero, it is becaUSe ot
ComsTOto takes place even whern incorneis
eronory:C= 3 br
15 Nen the corsumption function of an denoted ty
utonomous consunption and induCed consurnption are respectivety
e
when
16 The maxmum value of MPC can be
when (Fil! in thet
17 The um vaUe of MPC can be
(Choose the correct tgr
18 ThE range of MPC is (b) fron 0 to 1
a between O and 1 frorn 1to r
(d)
in ircorne, which of the following is true? (Choose the corec tte
hen corsumers corure part cf charge (b) MPC = 1
(2j MPC>1
(d) o< MPC< 1
(Choose the correct ait
20 At zEr ieve of incone, consumption is (b) positive
(d) zero or negative
(Choose thecorrect ate
in corsumpton funcionC=2+bY, brepreets
(b) saving
(d) MPS
by 100 crore? (Choose the correct ait
22 fMCs05, wa wi be cherze in ururnpion, f inorne increate
(bj 30 crore
(d) ?70 crore
True/Faise?Give
22A e v e r te equa to1.
 Objectlve Type Questions 3.1
ato of change in consumption tochange in income is ealle
The
al Marginal propensity to
consume (b) Maiginal opvensity to save
Average propensity to consume (o) Aeage wpensity osave
Inever b teo.
2 Aveage propensity to consume can
3Average propensity to consume can be greater than one.
4The minimum level of consumption for suIvival even iticote is e is callet
SThe value of MPCcan exceed one.
6Whch of the following is not true for MPC in an econoy
o) MPC can be zero (b) A lies beven e a oe
i) MPC can exceed one () Noe of theve
e onsumphon function of an imaginaly country is: C- N0 ee Whh of the ikwi r
RKonomy?
country does not thave any income its cittzei still Me 0we
b) People spend 70% of
i Both (a) and (tb) tise in income on consumpton
() Autonomous
0 When consumption is 80 croe and people sjend oft e yon
the
ia) consumpt
Greater
ion curve in an econonny lies above the 45 lne t n the valhe of ArA

One than one

() lexs(hat