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CSS :: Equilibrium Of National Income


1.  Which shows equilibrium of national income
A. Consumption = investment B. Saving = Investment
C. Saving < investment D. Saving > Investment

2.  This may cause an increase in national income:
A. Rise in exports B. Rise in imports
C. Fall in consumer spending D. Increase in saving

3.  If C = 200 and I = 40 then Y will equal:
A. 160 B. 240
C. 800 D. None of these

4.  Consumption is a function of:
A. Saving B. Investment
C. Income D. None of these

5.  Which one is investment in economics?
A. Building a factory B. Buying shares in stock exchange
C. Depositing money in bank D. Depositing money in housing society

6.  Marginal propensity to consume (MPC) is:
A. Total income spent on consumption B. Ratio of total income consumed
C. Ratio of additional income consumed D. Consumption divided by saving

7.  Which of the following world increase national income:
A. Increase in taxation B. Increase in savings
C. Increase in Govt. spending D. Decrease in consumption spending

8.  Which of the following is a withdrawal from the circular flow of income stream:
A. Investment B. Subsidies
C. Taxation D. Consumption

9.  Aggregate demand is:
A. Aggregate saving B. Aggregate investment
C. Aggregate income D. Aggregate expenditure

10.  To find net national product, depreciation is:
A. Added to GNP B. Subtracted from GNP
C. Multiplied with national income D. Has no role in national accounting




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