A linear consumption function with a positive slope less than one means that if income increases consumption will ?

Related Mcqs:

1. If the Keynesian consumption function is C = 10 + 0.8 Td when disposable income is Rs1000 total consumption is what ?

   A. 0.8
   B. 800
   C. 810
   D. 0.81

2. If the Keynesian consumption function is C = 10 + 0.8 Td when disposable income is Rs1000 the average propensity to consume is what ?

   A. 0.8
   B. 800
   C. 810
   D. 0.81

3. If the Keynesian consumption function is C = 10 + 0.8 Td when disposable income is Rs1000 the marginal propensity to consume is what ?

   A. 0.8
   B. 800
   C. 810
   D. 0.81

4. The income elasticity is +2 and income increases by 20% sales were 5000 units, what will they be now ?

   A. 3000
   B. 7000
   C. 5500
   D. 4500

5. When an increase in government purchases increases the income of some people, and those people spend some of that increase in income on additional consumer goods, we have seen a demonstration of ?

   A. The multiplier effects
   B. supply side economics
   C. None of these answers
   D. The crowding out effect

6. A tax whose burden expressed as a percentage of income, falls as income increases is a ?

   A. benefits received tax
   B. progressive tax
   C. regressive tax
   D. proportional tax

7. Assume that the real income of developing Island increases from $120,000 to $160,000 from 2005 to 2006 while its population expands from 1000 to 1100 during the same period Real income per capita has increased by about ?

   A. $145
   B. $40,000
   C. $25
   D. $100

8. On a graph, a positive linear relationship___________________?

   A. moves down to the right
   B. moves up to the left
   C. moves up to the right
   D. moves down to the left

9. uppose a consumer must choose between the consumption of sandwiches and pizza. If we measure the quantity of pizza on the horizontal axis and the quantity of sandwiches on the vertical axis and if the price of a pizza is Rs10 and the price of a sandwich is Rs5, then the slope of the budget constraint is ?

   A. 2
   B. 10
   C. 1/2
   D. 5

10. If the consumption of good by one person does not reduce the quantity available by others and nobody can be easily excluded from consumption, we are referring to a ?

    A. Private good
    B. merit good
    C. public good
    D. abundant good