Economics class 12 Aggregate demand, Aggregate supply an

1. AD refers to ;

Demand for all goods and services produced in the economy during a period of one year

Total unplanned expenditure on the goods and services in the economy during an accounting year

Sum total of investment expenditure and saving in the economy during an accounting year

All of these

2. Aggregate demand is estimated as ;

Private consumption expenditure

Private consumption expenditure + Govt expenditure

Private investment expenditure + Private consumption expenditure + Govt

Private consumption expenditure + Private investment expenditure + Govt

3. Consumption function is a functional relationship between ;

Income and saving

Price and consumption

Consumption and income

Consumption and saving

4. MPC being equal ; to 0.5, what will be C , if income increase by Rs 100 ?

Rs 60

Rs 50

Rs 40

Rs 70

5. If C = 450 and Y = 1,000, the average propensity to consume will be ;

750

0.75

450

0.45

6. When S changes from -30 to -20, then S equal to ;

-10

+10

-20

-30

7. Saving function is the functional relationship between ;

Income consumption

Price and saving

Saving and income

Consumption and saving

8. Saving function is the functional relationship between ;

Income consumption

Price and saving

Saving and income

Consumption and saving

9. If MPS is 0.6, what will be S when income increase by Rs 50 ?

Rs 30

Rs 20

Rs 25

Rs 35

10. If MPC is 40%, MPS will be ;

70%

60%

50%

40%

11. If consumption function is C = bY, what will be the saving function ?

S = C + bY

S = [1 – b] Y

S = -C +[ 1 – b ] Y

S = -bY

12. Which of the following is correct ?

MPC +MPS = 1

1 – MPC = MPS

1 – MPS = MPC

All of these

13. If MPC = 0.4 and Y = 1,000, what will be S ?

Rs 400

Rs 500

Rs 600

Rs 250

14. Break even point occurs when ;

Y = S

S = 0

Y = C

Both b and c

15. Break even point occurs when ;

Y = S

S = 0

Y = C

Both b and c

Economics class 12 Aggregate demand, Aggregate supply an

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