Determination of Income and Employment Test

Result

Determination of Income and Employment Test - 2

Score
-
out of -
Rank
-
out of -

TIME Taken - -

SHARING IS CARING

If our Website helped you a little, then kindly spread our voice using Social Networks. Spread our word to your readers, friends, teachers, students & all those close ones who deserve to know what you know now.

Weekly Quiz Competition

Question 1
1 / -0

APC+APS=

A
4

B
3

C
1.0

D
2

Solution

We know, APS=S/Y

APC=C/Y. Also, Y=C+S , because income is either consumed or saved.

Now, C/Y+S/Y=C+S/Y=Y/Y=1.
Question 2
1 / -0

The equation of saving function is

A
S = - a + (1 - b)

B
S = f (Y)

C
S = - a + (1 - b) Y

D
C = - a + by.
Question 3
1 / -0

In a two sector economy Aggregate Demand equals

A
Consumption + Private consumption expenditure

B
Consumption + Investment

C
Consumption + Exports

D
Consumption + Government Expenditure

Solution

Because,there are only two sectors: households and firms.Households consume and firms invest.
Question 4
1 / -0

The value of APS can be negative when

A
The value of consumption exceeds the value of income

B
The value of consumption does not exceed the value of income

C
The value of consumption is equal to the value of income

D
The value of consumption is less than the value of income

Solution

When consumption expenditure exceeds income,we have negative savings.

Thus, APS being function of saving is negative.
Question 5
1 / -0

APC = 1 - APS. It is

A
True

B
Depends on their values

C
False

D
None of these

Solution

Explanation:

APS + APC = 1

Or APC = 1 - APS.
Question 6
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 7
1 / -0

APC can also be greater than one when

A
APS will be zero

B
APS will be positive

C
APS will be negative

D
APS will be one

Solution

APC=1-APS

APC=1-(-APS)

APC=1+APS

So, APC>1 when APS is negative.
Question 8
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 National income

C
The relationship between investment demand and the consumption expenditure

D
The relationship between investment demand and the disposable income

Solution

Investment depends mainly on the rate of interest.As interest rate increases, investment decreases and vice versa.
Question 9
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.

User

Question Analysis

Correct -
Wrong -
Skipped -

My Perfomance

Score
-
out of -
Rank
-
out of -

Re-Attempt Weekly Quiz Competition

Determination of Income and Employment Test - 2

Result

Determination of Income and Employment Test - 2

Score

-

Rank

-

SHARING IS CARING

Question 1

4

3

1.0

2

Solution

Question 2

S = - a + (1 - b)

S = f (Y)

S = - a + (1 - b) Y

C = - a + by.

Question 3

Consumption + Private consumption expenditure

Consumption + Investment

Consumption + Exports

Consumption + Government Expenditure

Solution

Question 4

The value of consumption exceeds the value of income

The value of consumption does not exceed the value of income

The value of consumption is equal to the value of income

The value of consumption is less than the value of income

Solution

Question 5

True

Depends on their values

False

None of these

Solution

Question 6

Depends on their values

False.

True.

None of these

Solution

Question 7

APS will be zero

APS will be positive

APS will be negative

APS will be one

Solution

Question 8

The relationship between investment demand and the rate of interest

The relationship between investment demand and the National income

The relationship between investment demand and the consumption expenditure

The relationship between investment demand and the disposable income

Solution

Question 9

High level of Income

Zero level of Income

Maximum level of Income

Low level of Income

Solution

User

Question Analysis

My Perfomance

Score

-

Rank

-

Results Announcement on: coming Monday

Stay Tuned: We’ll update you on your result via email or SMS.