Determination of Income and Employment MCQs Mock Test of Class 12th Economics

Question 1. The ‘difference between the Aggregate Demand at above full employment and Aggregate Demand at full employment is known as:

Question 2. Which of the following is a reason for surplus demand?

Question 3. In the situation of the deflationary gap:

Question 4. Which of the following causes the trade cycle?

Question 5. Which one is the corrective measure for Deficient Demand?

Question 6. Which measure is included in Fiscal Measures?

Question 7. What is the shape of the Keynesian Aggregate Supply before the level of full employment is attained?

Question 8. According to classical economists, real wage rate is ______ to the Marginal Productivity of Labour.

Question 9. What is the cause of Keynesian perfectly elastic Aggregate Supply curve?

Question 10. According to classical economists, there always exists ______ equilibrium in the economy.

Question 11. What will be APC when APS = 0?

Question 12. If the income is ₹ 400 crores and consumption is ₹ 250 crores, what will be the APC?

Question 13. What is a fiscal measure of correcting deficient demand?

Question 14. Which is the measure of correcting excess demand?

Question 15. Suppose in a hypothetical economy, the income rises from ₹ 5,000 crores to ₹ 6,000 crores. As a result, the consumption expenditure rises from ₹ 4,000 crores to ₹ 4,600 crores. Marginal propensity to consume in such a case would be ______

Question 16. What are the characteristics of Deficit Demand?

Question 17. Deflationary Gap shows the measurement of:

Question 18. Which one is the reason for appearing Deficit Demand condition?

Question 19. Which of the following is true?

Question 20. On the basis of government law, the compulsory payment made by the public is known as _________

Question 21. Which among is the direct tax?

Question 22. The value of multiplier is:

Question 23. If MPC = 1, the value of the multiplier is:

Question 24. Aggregate demand can be increased by:

Question 25. If the marginal propensity to consume is greater than the marginal propensity to save, the value of the multiplier will be

Question 26. Supply creates its own Demand. Who gave this law?

Question 27. Who is the author of the book ‘General Theory of Employment, Interest, and Money’?

Question 28. Which of the following is true for the Classical Theory of Employment?

Question 29. On which factor Keynesian Theory of Employment depends?

Question 30. Which is the determining factor for investment?

Question 31. ‘The theory of employment multiplier was propounded by:

Question 32. If income equilibrium level in the economy is determined at the level before full employment, it is known as the state of:

Question 33. In Keynesian economics, the state of Deficit Demand is called as:

Question 34. According to Keynes, investment implies:

Question 35. With the increase in investment, MEC:

Question 36. Which of the following is a Read Investment?

Question 37. APC + APS = ?

Question 38. MPC = MPS = ?

Question 40. Which or is true?

Question 41. The main component of aggregate demand is:

Question 42. Who is the writer of the book, “Trained Economic Politique”?

Question 43. IF MPC = 0.5, then Multiplier (k) will be:

Question 44. On which concept does classical viewpoint depend?

Question 45. “Wage cut maintains full employment in the economy.” Who put forward this view?

Question 46. Which one of the following is the determining factor of Equilibrium Income is the Keynesian Viewpoint?

Question 47. In Keynesian viewpoint, the equilibrium level of income and employment in the economy will be established where:

Question 48. According to the saving-investment viewpoint, income employment equilibrium will be determined at a point where:

Question 49. An increase in aggregate demand of equilibrium level of income and employment causes an increase in:

Question 50. Which one is correct?