Q 1. The consumption function of an imaginary economy is C = 80 + 0.7Y. It means that:
Q 2. When the consumption curve of an economy lies above the 45 degree line, the value of APC is:
Q 3. If MPC is 0.5, what will be the value of change in consumption, if income increases by 100 cr?
Q 4. The planned values of a variable are known as its ex-post values.
Q 5. The minimum value of MPC is 0 and the maximum value of MPS is 1.
Q 6. When consumers consume a part of the change in income, which of the following holds true?
Q 7. What is the nature of relationship between income and APC, and income and APS respectively?
Q 8. Ex-post investment refers to the fixed investment of the firms over a period of time.
Q9. In the consumption function C= 200 + 0.4Y, the value of dis-savings will be:
Q 10. If APC is 1.2, the value of APS will be zero.
Q 12. The AD and consumption curve are always parallel to each other because of:
Q 13. The value of slope at each point on the line of reference is equal to:
Q 14. The slope of the savings curve is known as _______________ and is _______________throughout.
Q 16. While calculating unemployment of a country, _______________ type of unemployment is taken into consideration.
Q 17. At the break-even point:
Q 18. Which of the following can have a negative value?
Q 19. Ex-ante savings is a:
Q 20. At zero level of income, AD is _______________, and AS is _______________