A. Household’s purchases of food
B. Households’ purchase of a car
C. Household’s payment of rent for an apartment
D. Household’s purchase of stock in any XYZ corporation
Related Mcqs:
- 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 - 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 - 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 - If one person’s enjoyment of the benefits of a good does not interfere with another’s consumption of it, the good is said to be ?
A. limitless in utility
B. non-rival in consumption
C. congestible in consumption
D. non-excludable - What is called when government spending overwhelms government revenue resulting in government borrowing ?
A. Budget deficit
B. Deficient financing
C. Unbalanced spending
D. Deficit spending - If the government increases spending and raises taxes by just enough to finance this increase it will ?
A. leave output unchanged
B. increase output
C. reduce output
D. increase the MPC - Suppose the economy is initially in long-run equilibrium Then suppose there is an increase in military spending due to rising international tensions According to the model of aggregate demand and aggregate supply what happens to prices and output in the short run ?
A. Price fall; output rises
B. Price fall; output falls
C. Price rise; output fall
D. Price rise; output rise - The government increase government spending to try to reduce unemployment This is an example of ?
A. laissez-faire.
B. monetary policy
C. fine tuning
D. automatic stablisers - Today advertising captures about ________ percent of total promotion spending?
A. 15
B. 23
C. 29
D. 33 - Based on Mankiw Romer and Weil (1992) with conditional convergence holding fertility rates, education and government spending as a share of GDP constant ?
A. income per capita is the same regardless of poor or rich countries
B. income per capita in poor countries grows faster than in rich countries
C. income per capita in rich countries grows faster than in poor countries
D. income per capita in poor countries grows conditional upon foreign aid
