Increased level consumption ?

Related Mcqs:

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

   A. fall
   B. not change
   C. fluctuate
   D. increase

2. 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

3. 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

4. An increase in consumption at any given level of income is likely to lead to ?

   A. A fall is savings
   B. An increase in exports
   C. A fall in taxation revenue
   D. A decrease in import spending

5. According to Supply-side economists. if taxes are cut so that people have an increased incentive to work and businesses have an increased incentive to invest ?

   A. aggregate supply will increase will increase aggregate demand will decrease and the price level will decrease
   B. aggregate supply will increase will increase aggregate output will increase and the price level will decrease
   C. aggregate supply will increase will increase aggregate output will increase and the price level will increase
   D. both aggregate supply and demand will increase will increase and the price level will increase

6. According to supply-side economists if taxes are cut so that people have an increased incentive to work and businesses have an increased incentive to invest ?

   A. aggregate supply will increase , aggregate demand will decrease
   B. aggregate supply will increase, aggregate output will increase and the price level will decrease
   C. aggregate supply will increase aggregate output will increase and the price level will increase
   D. both aggregate supply and demand will increase and the price level will increase

7. Suppose a wave of investor and consumer optimisms has increased spending so that the current level of input exceeds the long-run natural rate If policy makers choose to engage in activist stabilization policy they should ?

   A. decrease government spending Which the shifts the aggregate demand curve to the left
   B. decrease taxes, which shifts the aggregate demand curve to the right
   C. decrease taxes, which shifts the aggregate demand curve to the left
   D. decrease government spending which shifts the aggregate demand curve to the right

8. The long run equilibrium level of national income is the level at which ?

   A. economic growth is Zero
   B. All investment is used in the manufacturing sector
   C. Economic growth is growing
   D. All investment is used to maintain the existing capital stock at its current level

9. Which index combines measures of calorie availability (in relation to requirement) the growth of per capita daily energy supply food production food staples self-sufficiency, and variability of food production and consumption ?

   A. food sufficiency index
   B. food security index
   C. food self-intake index
   D. food growth index

10. 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