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

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. 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

3. 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

4. Within the circular flow of income, an increase in domestic income will tend to increase ?

   A. exports
   B. taxes
   C. inventories
   D. imports

5. Which of the following government policies is least likely to increase likely to increase growth in Africa ?

   A. increase expenditure on public education
   B. eliminate civil war
   C. All of these answers would increase growth
   D. increase restrictions on the importing of American tractors and electronics

6. For a given level of technology, we should expect an increase in productivity within a nation when there is an increase in each of the following except ?

   A. labor
   B. physical capital/worker
   C. human capital/worker
   D. natural resources/worker

7. According to the quantity theory of money an increase in the money supply is most likely to lead to inflation if ?

   A. The velocity of circulation decrease
   B. The number of transaction decrease
   C. There is deflation
   D. The velocity of circulation and the number of transactions is constant

8. An increase in aggregate demand is more likely to lead to demand pull inflation if ?

   A. Aggregate supply is perfectly elastic
   B. Aggregate supply is Perfectly inelastic
   C. Aggregate supply is unit elastic
   D. Aggregate supply is relatively elastic

9. 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

10. An increase in national income is likely to ?

    A. Decrease tax receipts
    B. Worsen the balance of trade
    C. Automatically cause an increase in government spending
    D. causes an increase in injections into the economy