Economics MCQ Quiz Hub

1. Which shows equilibrium of national income
Consumption = investment
Saving = Investment
Saving < investment
Saving > Investment

2. This may cause an increase in national income:
Rise in exports
Rise in imports
Fall in consumer spending
Increase in saving

3. If C = 200 and I = 40 then Y will equal:
160
240
800
None of these

4. Consumption is a function of:
Saving
Investment
Income
None of these

5. Which one is investment in economics?
Building a factory
Buying shares in stock exchange
Depositing money in bank
Depositing money in housing society

6. Marginal propensity to consume (MPC) is:
Total income spent on consumption
Ratio of total income consumed
Ratio of additional income consumed
Consumption divided by saving

7. Which of the following world increase national income:
Increase in taxation
Increase in savings
Increase in Govt. spending
Decrease in consumption spending

8. Which of the following is a withdrawal from the circular flow of income stream:
Investment
Subsidies
Taxation
Consumption

9. Aggregate demand is:
Aggregate saving
Aggregate investment
Aggregate income
Aggregate expenditure

10. To find net national product depreciation is:
Added to GNP
Subtracted from GNP
Multiplied with national income
Has no role in national accounting

11. MPC is:
C/Y
?C/?Y
Y/C
?Y/?C

12. National income equals:
c + s + g
c + 1 + g
c - 1 - g
c - s - g

13. National income equals:
c + 1 + t
c + s + t
c + t - g
c - t + g

14. GDP at constant prices calculated according to some base year is called:
Actual GDP
Nominal GDP
Real GDP
Net GDP

15. MPC cannot be:
Positive
Negative
Zero
More than APC