MCQs For NCERT Class 12 Economics Chapter 10 Determination of Income and Employment

Please refer to the MCQ Questions for Class 12 Economics Chapter 10 Determination of Income and Employment with Answers. The following Determination of Income and Employment Class 12 Economics MCQ Questions have been designed based on the latest syllabus and examination pattern for Class 12. Our experts have designed MCQ Questions for Class 12 Economics with Answers for all chapters in your NCERT Class 12 Economics book.

Determination of Income and Employment Class 12 MCQ Questions with Answers

See below Determination of Income and Employment Class 12 Economics MCQ Questions, solve the questions and compare your answers with the solutions provided below.

Question. Consumption function is a functional relationship between:   
a. Income and saving;
b. Price and consumption;
c. Income and consumption;
d. Income, consumption and saving

Question. Average propensity to consume (APC) is equal to:         
(a) Y/C;
b. ΔY/ ΔC;
c. C/Y;
d. ΔC/ ΔY

Question. MPC being equal to 0.5, what will be, if income increases by Rs 100?
a. Rs 60;
b. Rs 50;
c. Rs 40;
d. Rs 70

Question. Average propensity to save (APS) is equal to:     
b. Y/S;
b. ΔY/ ΔS;
c. S/Y;
d. ΔS/ ΔY

Question. If MPC is 40 per cent, MPS will be:       
a. 70 per cent;
b. 60 per cent;
c. 50 per cent;
d. 40 per cent

Question. If consumption expenditure is equal to the national income, then APS will be?
a. 1
b. o
c. (-1)
d. infinity

Question. If the value of APC is greater than one, APS will be?
a. Negative
b. Zero
c. Greater than one
d. None

Question. Multiplier is —————— related to the MPS.
a. Negatively
b. directly
c. not
d. rarely

Question. When MPC is increasing in the economy, the rate of investment multiplier will———
a. Rise
b. Fall
c. Either rise or fall
d. Neither rise nor fall

Question. In an economy investment increase by 100 Crores , and MPC is 0.57 , then National income will increase by———-
a. 500
b. 250
c. 570
d. 400

Question. If saving function of an economy is S = -50 + 0.25 Y, then the value of MPC is——-
a. 0.25
b. 1.25
c. (-0.25)
d. 0.75

Question. Which of the followings value may be negative?
a. MPC
b. MPS
c. APS
d. APC

Question. When MPS value is 0.25 , the value of investment multiplier will be?
a. 1.33
b. 2
c. 5
d. 4

Question. Maximum value of investment multiplier is————- when the value of MPC————
a. Ten, zero
b. infinity, one
c. infinity, zero
d. none of them

Question. The ratio of change in saving and change in Income is———————-
a. MPC
b. APC
c. MPS
d. APS