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    12 Eco TP Adasrelatedconcept 04

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    12 Eco TP Adasrelatedconcept 04

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    12 Eco Tp Adasrelatedconcept 04(1)

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    myCBSEguide

    Class 12 - Economics
    AD, AS and Related Concepts Test - 04

    1. If the initial increase in the investment is Rs 1,000 and MPC = 0.8, the level of savings will increase by
    a) 4,000
    b) 1,000
    c) 2,000
    d) 3,000
    2. Complete the flow ΔI → ΔY → ΔC → ________.
    a) ΔD
    b) ΔC
    c) ΔS
    d) ΔY
    3. In C = a + b(Y), b denotes:
    a) MPC
    b) MPS
    c) 1 + MPC
    d) 1 - MPC
    To practice more questions & prepare well for exams, download myCBSEguide App. It provides complete study
    material for CBSE, NCERT, JEE (main), NEET-UG and NDA exams.
    4. Total value of goods and services produced in an economy during a year is called:
    a) Aggregate supply
    b) Savings
    c) Investment
    d) Aggregate demand
    5. What is meant by Average Propensity to Consume (APC)?
    6. What is ex-ante supply (output)?
    7. If the households save ₹ 500 crores out of a total additional income of ₹ 5,000 crores in an economy, calculate MPC.
    8. When ex-ante savings be equal to ex-ante investment?
    9. From the following data calculate the equilibrium level of National Income,
    Autonomous consumption =Rs.500
    Marginal Propensity to Save = 0.2
    Investment =Rs.2,000.
    10. Explain the relationship between Average Propensity to Consume and Average Propensity to Save. Which of these can have
    a negative value and when?
    11. Saving curve of an economy makes a negative intercept of Rs. 30 Crores and 20% of the increased income is saved. Give
    saving and consumption function.
    12. In an economy, as a result of increase in investment by Rs. 100 crore, National Income rises by Rs. 1,000 crore. Find
    Marginal Propensity to Consume.
    13. Investment in an economy rises by Rs 1,000 crore. Suppose Marginal Propensity to Save is 0. What can you say about the
    increase in National Income?
    14. In an economy 75% of the increase in income is spent on consumption. Investment is increased by Rs. 1,000 crore.
    Calculate: (i) Total increase in income, (ii) Total increase in consumption expenditure.
    15. How is saving and investment approach derived from the Aggregate Demand and supply approach of income determination?
    Explain and use diagram.

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