CUET 2024 Economics Determination of Income and Employment MCQ Question Answers

1. Paradox of Thrift Means If all the people of the economy increase the proportion of income they save the total value of savings in the economy will

2. Marginal Propensity to Consume is the change in consumption per unit change in_______.

3. If MPC is 0.6, Then the investment Multiplier will be

4. When Planned Savings is less than planned Investment, then: _______

5. ‘Investment goods’ (such as machines) are also part of the final goods – they are not intermediate goods like raw materials.

6. The inventory investment can take place due to

7. aggregate output is determined solely by the level of aggregate demand. This is known as________.

8. Even if income is zero, some consumption still takes place. Since this level of consumption is independent of income, it is called _______ consumption.

9. When a Country does not have any income, its citizens still consume Rs. 100 worth of goods. Country’s autonomous consumption is 100. Its marginal propensity to consume is 0.8. This means that if income goes up by Rs. 100 then consumption will go up by________

10. The index for wholesale prices is called Wholesale Price Index (WPI). In countries like USA, it is referred to as _________

11. The most important determinant off consumption demand is __________

12. A consumption function describes the relation between ­­­­________& ________.

13. The major economic activities of the government that affect the aggregate demand for final goods and services can be summarized by the _______&_________.

14. The Marginal Propensity to Save (MPS) is defined as the rate of change in ______ as income increases.

15. If the demand is more than the level of output produced at full employment level. This situation is called the situation of excess _________. It leads to rise in prices in the __________

16. The concept that the aggregate value of goods and services produced in an economy is going around in a circular way. Either as factor payments, or as expenditures on goods and services, or as the value of aggregate production is Called as _______________

17. _______ are the unsold goods, unused raw materials or semi-finished goods which a firm carries from a year to the next

18. The algebraic Relationship Between Multiplier and MPC Is –

19. A = __ +__ is the total autonomous expenditure in the economy.

20. The marginal propensity to consume may be explained as a rate of change of consumption as income changes.