Micro Economics MCQ (GK Set-1) with Answers

Micro Economics MCQ (GK Set-1) with Answers

401) Which of the following must always be equal?

Answer is:

Actual saving and actual investment in a four-sector economy

402) Which of the following statements is correct in the case of a four-sector economy?

Answer is:

I equals planned spending on new capital goods

403) Suppose that one month, injections in a four-sector economy are greater than withdrawals. Which of the following statements is false?

Answer is:

Planned spending will be greater than output.

404) Suppose we draw the consumption function for a two-sector economy, with disposable income, YDIS, on the horizontal axis and planned consumption, C, on the vertical axis. Suppose we also add a 45 degree line through the origin, and find that the consumption

The slope of the consumption function at any level of YDIS shows the value of MPCDIS at that level of YDIS

If YDIS in the economy was 1,000 billion dollar a year, planned consumer spending would also equal 1,000 billion dollar a year.

If YDIS in the economy was less than 1,000 billion dollar a year, planned saving would be negative

The consumption function must be a straight line.

Answer is:

The consumption function must be a straight line.

405) Which of the following factors might cause a country’s consumption function to shift upwards?

Answer is:

A fall in interest rates

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