R4RIN – MCQs, Mock Tests | Economics Economics Equilibrium Of National Income

Which shows equilibrium of national income

1. Consumption = investment
2. Saving = Investment
3. Saving < investment
4. Saving > Investment

✅ Correct Answer: 2

This may cause an increase in national income:

1. Rise in exports
2. Rise in imports
3. Fall in consumer spending
4. Increase in saving

✅ Correct Answer: 1

If C = 200 and I = 40 then Y will equal:

1. 160
2. 240
3. 800
4. None of these

✅ Correct Answer: 2

Consumption is a function of:

1. Saving
2. Investment
3. Income
4. None of these

✅ Correct Answer: 3

Which one is investment in economics?

1. Building a factory
2. Buying shares in stock exchange
3. Depositing money in bank
4. Depositing money in housing society

✅ Correct Answer: 1

Marginal propensity to consume (MPC) is:

1. Total income spent on consumption
2. Ratio of total income consumed
3. Ratio of additional income consumed
4. Consumption divided by saving

✅ Correct Answer: 3

Which of the following world increase national income:

1. Increase in taxation
2. Increase in savings
3. Increase in Govt. spending
4. Decrease in consumption spending

✅ Correct Answer: 3

Which of the following is a withdrawal from the circular flow of income stream:

1. Investment
2. Subsidies
3. Taxation
4. Consumption

✅ Correct Answer: 3

Aggregate demand is:

1. Aggregate saving
2. Aggregate investment
3. Aggregate income
4. Aggregate expenditure

✅ Correct Answer: 4

To find net national product depreciation is:

1. Added to GNP
2. Subtracted from GNP
3. Multiplied with national income
4. Has no role in national accounting

✅ Correct Answer: 2

MPC is:

1. C/Y
2. ?C/?Y
3. Y/C
4. ?Y/?C

✅ Correct Answer: 2

National income equals:

1. c + s + g
2. c + 1 + g
3. c - 1 - g
4. c - s - g

✅ Correct Answer: 2

National income equals:

1. c + 1 + t
2. c + s + t
3. c + t - g
4. c - t + g

✅ Correct Answer: 3

GDP at constant prices calculated according to some base year is called:

1. Actual GDP
2. Nominal GDP
3. Real GDP
4. Net GDP

✅ Correct Answer: 4

MPC cannot be:

1. Positive
2. Negative
3. Zero
4. More than APC

✅ Correct Answer: 1