Income Determination Test

Result

Income Determination Test - 10

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Weekly Quiz Competition

Question 1
1 / -0

C= a+b(Y)

A
Algebraic function of the level of Investment expenditure

B
Algebraic function of the level of capital expenditure

C
Algebraic function of the level of Consumption expenditure

D
Linear function of the level of Consumption expenditure

Solution

Consumption has two parts :induced consumption and autonomous consumption.In the function, a implies autonomous consumption and bY implies induced consumption.
Question 2
1 / -0

The investment demand function is

A
The relationship between investment demand and the rate of interest

B
The relationship between investment demand and the disposable income

C
The relationship between investment demand and the National income

D
The relationship between investment demand and the consumption expenditure

Solution

Investment depends mainly on the rate of interest.As interest rate increases, investment decreases and vice versa.
Question 3
1 / -0

Autonomous consumption is assumed to be at

A
High level of Income

B
Zero level of Income

C
Maximum level of Income

D
Low level of Income

Solution

Autonomous consumption is independent of income.So, it takes place even when income is zero.
Question 4
1 / -0

APC = 1 - APS. It is

A
Depends on their values

B
False.

C
True.

D
None of these

Solution

APS + APC = 1

Or APC = 1 - APS.
Question 5
1 / -0

APS = 1 + APC. It is

A
Depends on their values

B
False.

C
True.

D
None of these

Solution

APS = 1 - APC , it implies that APS is always less than one.
Question 6
1 / -0

MPC = 1 - MPS. It is

A
True.

B
False.

C
Depends on their values

D
None of these

Solution

MPS + MPC = 1

MPC = 1 - MPS

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Re-Attempt Weekly Quiz Competition

Income Determination Test - 10

Result

Income Determination Test - 10

Score

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Rank

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SHARING IS CARING

Question 1

Algebraic function of the level of Investment expenditure

Algebraic function of the level of capital expenditure

Algebraic function of the level of Consumption expenditure

Linear function of the level of Consumption expenditure

Solution

Question 2

The relationship between investment demand and the rate of interest

The relationship between investment demand and the disposable income

The relationship between investment demand and the National income

The relationship between investment demand and the consumption expenditure

Solution

Question 3

High level of Income

Zero level of Income

Maximum level of Income

Low level of Income

Solution

Question 4

Depends on their values

False.

True.

None of these

Solution

Question 5

Depends on their values

False.

True.

None of these

Solution

Question 6

True.

False.

Depends on their values

None of these

Solution

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