Equilibrium in the circular flow of income occurs when ?

Related Mcqs:

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

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

2. If a result of households wish to save more there is a change in equilibrium income and no change in equilibrium saving this is an example of ?

   A. market imperfection
   B. the law of diminishing returns
   C. the paradox of thrift
   D. market failure

3. Total withdrawals from the circular flow of income include ?

   A. consumption savings and taxes
   B. savings government expenditure and imports
   C. savings taxes and exports
   D. savings taxes and imports

4. Which of the following is a withdraw from the circular flow income stream ?

   A. Investment
   B. Subsidies
   C. Taxation
   D. Consumption

5. The World Bank’s GNP per capita classification for low income middle income and high income countries respectively is ?

   A. less than $900, $900-$9000 and more than $9000
   B. less than $5000, $5000-$15000 and more than $15000
   C. less than $100, $100-$1000 and more than $1000
   D. less than $5000, $5000-$150000 and more than $150000

6. A tax for which high income taxpayers pay a smaller fraction of their income than do low income taxpayers is known as ?

   A. a proportional tax
   B. a regressive tax
   C. an equitable tax
   D. a progressive tax

7. If the income tax rate changes from 30% to 40% on income over Rs30,000 and a person’s income is Rs 31,000 then her marginal tax rate is ?

   A. 30%
   B. 10%
   C. 70%
   D. 40%

8. Injection into the circular flow are ______ and __________?

   A. consumption investment exports
   B. investment exports transfer payments
   C. investment government expenditure exports
   D. taxes exports, transfer payments

9. Leakages from the circular flow are _________ and __________?

   A. investment, savings, government expenditure
   B. savings, taxes net of subsidies imports
   C. consumption investment government expenditure
   D. consumption taxes imports

10. In the circular flow we would expect leakages to ___________ injections?

    A. equal
    B. be less than
    C. be greater than
    D. be less or greater than