If an increase in investment leads to a bigger increase in national income this called the ?

Related Mcqs:

1. 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

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

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

3. Gross National income is always more than Net National income because it includes ?

   A. Foreign income
   B. Capital consumption allowance
   C. Indirect taxes
   D. Direct taxes

4. An increase in price from 25 pence to 30 pence leads to an increase in the quantity supplied from 40 units to 44 units. The price elasticity of supply is ?

   A. +2
   B. +0.5
   C. -2
   D. -0.5

5. If a 4% increase in price leads to a increase in the quantity supplied of 8% ?

   A. Supply is price elastic
   B. Supply is income elastic
   C. Price elasticity of demand is -2
   D. Price elasticity of supply is -2

6. If an increase in the price of blue jeans leads to an increase in the demand for tennis shoes, then blue jeans and tennis shoes are ?

   A. Complements
   B. inferior goods
   C. normal goods
   D. none of these answers
   E. Substitutes

7. 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

8. 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

9. 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%

10. If saving exceeds investment the national income will ?

    A. Fall
    B. Rise
    C. Fluctuate
    D. Remain constant