TN State Board Samacheer Kalvi Online Test for 11th Std - Economics - English - Consumption and Investment Functions

Question 1 Of 10

Lower interest rates are likely to :

Decrease in consumption increase the cost of borrowing Encourage saving increase borrowing and spending

Question 2 Of 10

As national income increases

The APC fall’s and gets nearer in value to the MPC The APC increases and diverges in value from the MPC The APC stays constant The APC always approaches infinity.

Question 3 Of 10

If the Keynesian consumption function is C = 10 + 0.8 Y then, and disposable income is ₹ 100, what is the average propensity to consume?

₹ 0.8 ₹ 800 ₹ 810 ₹ 50.9

Question 4 Of 10

The sum of the MPC and MPS is ……………..

1 2 0.1 1.1

Question 5 Of 10

When the investment is assumed autonomous the slope of the AD schedule is determined by the …………………

marginal propensity to invest disposable income marginal propensity to consume average propensity to consume.

Question 6 Of 10

The multiplier is calculated as

1(1-MPC) 1/ MPS 1/ MPC a and b

Question 7 Of 10

If the Keynesian consumption function is C = 10 + 0.8 Y then when disposable income is Rs 100, What is the marginal propensity to consume?

₹ 0.8 ₹ 800 ₹810 ₹0.81

Question 8 Of 10

In an open economy import …………….. the value of the multiplier.

Reduces increase does not change Changes

Question 9 Of 10

As income increases, consumption will ……………..

Fall not change fluctuate increase

Question 10 Of 10

If the MPC is 0.5, the multiplier is …………………

2 1/2 0.2 20

Tamil Nadu State Board ( Samacheer Kalvi ) Online Test based on Book Back Questions - 11th Standard Economics - English Medium - Consumption and Investment Functions

Samacheer Kalvi 11th Economics - Consumption and Investment Functions - Book Back Questions in English Medium