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220 questions found · practise this subject as a set Show 20 · 50 per page
#QuestionSubject and topicDifficulty
121 If MPC is 0.8, what is the value of the investment multiplier? Economics/Business Economics
Multiplier
Easy
122 The value of the investment multiplier will be larger when: Economics/Business Economics
Multiplier
Easy
123 MPS in an economy is 0.25. Investment rises by ₹50 crore. By how much will equilibrium income rise? Economics/Business Economics
Multiplier
Medium
124 The government wants income to rise by ₹500 crore and the MPC is 0.8. How much extra investment is needed? Economics/Business Economics
Multiplier
Medium
125 An increase in investment of ₹40 crore raises income by ₹160 crore. What is the MPC? Economics/Business Economics
Multiplier
Hard
126 Excess demand at full employment mainly leads to: Economics/Business Economics
Excess and deficient demand
Easy
127 Which fiscal measure would help to correct deficient demand? Economics/Business Economics
Excess and deficient demand
Easy
128 At full-employment output of ₹1,000 crore, aggregate demand is ₹1,100 crore. What is the situation? Economics/Business Economics
Excess and deficient demand
Medium
129 Which monetary measure is appropriate when the economy faces an inflationary gap? Economics/Business Economics
Excess and deficient demand
Medium
130 Equilibrium income is ₹800 crore but full-employment income is ₹1,000 crore. If the MPC is 0.75, by how much … Economics/Business Economics
Excess and deficient demand
Hard
131 The government budget is a statement of estimated receipts and expenditure for: Economics/Business Economics
Government budget
Easy
132 Street lighting is supplied by the government rather than by the market mainly because it is: Economics/Business Economics
Government budget
Easy
133 The government raises income tax rates for the highest income group and spends the money on free health care … Economics/Business Economics
Government budget
Medium
134 During a sharp rise in prices, the government cuts its own spending and raises indirect taxes. Which objectiv… Economics/Business Economics
Government budget
Medium
135 Why does a private firm find it hard to supply national defence profitably? Economics/Business Economics
Government budget
Hard
136 Which of the following is a capital receipt? Economics/Business Economics
Receipts and expenditure
Easy
137 Interest paid by the government on its past loans is: Economics/Business Economics
Receipts and expenditure
Easy
138 The government sells part of its shares in a public sector company. How is this classified? Economics/Business Economics
Receipts and expenditure
Medium
139 Which item is capital expenditure of the government? Economics/Business Economics
Receipts and expenditure
Medium
140 Which pair is correctly matched? Economics/Business Economics
Receipts and expenditure
Hard