Matching Type MCQs of Determination of Income and Employment Macroeconomics class 12
Looking for Important Matching Type MCQs of Determination of Income and Employment chapter with answers and explanation of Macroeconomics class 12 CBSE, ISC and other state Board.
Matching Type Multiple choice Questions of Determination of Income and Employment chapter of Macroeconomics class 12
Let’s Practice
From the set of statements given in Column I and Column II, Choose the correct pair of statements:
| Column – I | Column – II |
| A) APC | i) Can never be equal to 1 |
| B) APS | ii) Can be less than 0 |
| C) MPC | iii) Can be more than 1 |
| D) MPS | iv) Varies between -1 and +1 |
Options
a) A – i
b) B – ii
c) C – iii
d) D – iv
Ans – b)
Match the statements given under A with the correct options given under B.
| Column – A | Column – B |
| i) Ex-ante Saving | A – Actual or realized saving in an economy during a year. |
| B – Amount of saving which households plan to save at different levels of income in the economy. |
Options
a) i – A
b) i – B
Ans – b)
Match the statements given under A with the correct options given under B.
| Column – A | Column – B |
| i) Induced investment | A – It is income inelastic |
| ii) Autonomous Investment | B – It is income elastic |
a) i – A, ii – B
b) i – B, ii – A
Ans – b)
Match the statements given under A with the correct options given under B.
| Column – A | Column – B |
| i) Consumption Function | A – Consumption + Invetment |
| ii) Aggregate Demand | B – Consumption + Savings |
| C – Propensity to Consume |
Options
a) i – A, ii – B
b) i – C, ii – A
c) i – B, ii – C
Ans – b)
Match the statements given under A with the correct options given under B.
| Column – A | Column – B |
| i) Break even point | A – Value varies between 0 and 1 |
| ii) Autonomous Consumption | B – Propensity to Consume |
| iii) MPS | C – Consumption = National Income |
| iv) APC | D – Consumption at zero level of National Income |
| v) Consumption Function | E – C/Y |
Options
a) i – A, ii – B, iii – C, iv – D, V – E
b) i – B, ii – A, iii – D, iv – C, v – E
c) i – C, ii – D, iii – A, iv – E, v – B
d) i – D, ii – C, iii – E, iv – A, v – B
Ans – C)
Match the statements given under A with the correct options given under B.
| Column – A | Column – B |
| i) Saving Function | A – ∆C/∆Y |
| ii) MPC | B – Value can be more than 1 |
| iii) Ex-ante saving | C – Break-Even Point |
| iv) Zero Savings | D – Propensity to Save |
| v) APC | E – Amount of saving which households plan to save at different levels of income |
Options
a) i – A, ii – B, iii – C, iv – D, v – E
b) i – B, ii – A, iii – D, iv – C, v – E
c) i – C, ii – D, iii – B, iv – A, v – E
d) i – D, ii – A, iii – E, iv – C, v – B
Ans – d)
Match the statements given under A with the correct options given under B.
| Column – A | Column – B |
| i) APC | A – ∆S/∆Y |
| ii) MPC | B – S/Y |
| iii) MPS | C – ∆C/∆Y |
| iv) APS | D – C/Y |
Options
a) i – A, ii – B, iii – C, iv – D
b) i – B, ii – C, iii – B, iv – D
c) i – C, ii – A, iii – B, iv – D
d) i – D, ii – C, iii – A, iv – B
Ans – d)
Match the statements given under A with the correct options given under B.
| Column – A | Column – B |
| i) Consumption Function | A) MPS |
| ii) 1 – MPC | B) Saving = 0 |
| iii) Break-even point | C) MPC |
| iv) Slope of Consumption Curve | D) C = c bar + bY |
Options
a) i – A, ii – B, iii – C, iv – D
b) i – B, ii – C, iii – A, iv – D
c) i – D, ii – A, iii – B, iv – C
d) i – C, ii – D, iii – A, iv – B
Ans – c)
From the set of statements given in Column I and Column II, choose the correct pair of statements.
| Column – A | Column – B |
| A) When AD is more than AS | i) Planned Inventory would rise above the desired level |
| B) Investment Multiplier | ii) ∆I/∆Y |
| C) When Saving is less than Investment | iii) Planned inventory would fail below the desired level |
| D) Multiplier | iv) Inversely related to MPC |
Options
i) A – i
b) B – ii
c) C – iii
d) D – iv
Ans – c)
Match the statements given under A with the correct options given under B.
| Column – A | Column – B |
| i) When Planned saving is less than Planned Investment | A) National Income is likely to fall |
| B) National Income is likely to rise |
Options
a) i – A
b) i – B
Ans – b)
Match the statements given under A with the correct options given under B.
| Column – A | Column – B |
| i) In AD-AS approach, AD curve is represented as | A – (C+S) curve |
| B – (C+I) curve |
Options
a) i – A
b) i – B
Ans – b)
Match the statements given under A with the correct options given under B.
| Column – A | Column – B |
| i) Multiplier (k) | A – National Income will rise |
| ii) When AD>AS | B – Direct Relationship |
| iii) Underemployment Equilibrium | C – AD = AS when the resources are not fully employed |
| iv) Multiplier and MPC | D – Planned inventory falls below the desired level |
| v) When S<I | E – 1/1 – MPC |
Options
a) i – A, ii – B, iii – C, iv – D, v – E
b) i – B, ii – C, iii – D, iv – E, v – A
c) i – E, ii – D, iii – C, iv – B, v – A
d) i – C, ii – A, iii – B, iv – D, v – E
Ans – c)
From the set of statements given in Column I and Column II, choose the correct pair of statements:
| Column – A | Column – B |
| A – Quantitative Instrument | i) Margin Requirements |
| B – Decrease in Government Spending | ii) Part of Fiscal Policy |
| C – Qualitative Instrument | iii) Legal Reserve Requirements |
| D – Increase in Taxes | iv) part of Monetary Policy |
Options
a) A – i
b) B – ii
c) C – iii
d) D – iv
Ans – d)
Match the statements given under A with the correct options given under B.
| Column – A | Column – B |
| i) Excess Demand | A – Leads to fall in the general price level |
| ii) Deficient Demand | B – Leads to rise in the general price level |
Options
a) i – A, ii – B
b) i – B, ii – A
Ans – b)
Match the statements given under A with the correct options given under B.
| Column – A | Column – B |
| i) Deflationary Gap | A – When AD>AS corresponding to full employment level of output in economy. |
| ii) Legal Reserve Requirements | B – Fiscal measure during Excesss Demand |
| iii) Excess Demand | C – Aim to influence the total volume of credit in circulation. |
| iv) Decrease in Government Spending | D – Cash Reserve Ratio and Statutory Liquidity Ratio |
| v) Quantitative Instruments | E – Gap by which actual AD fails short of AD required to establish full employment equilibrium |
Options
a) i – A, ii – B, iii – C, iv – D, v – E
b) i – B, ii – C, iii – B, iv – E, v – D
c) i – E, ii – D, iii – A, iv – B, v – C
d) i – C, ii – E, iii – D, iv – A, v – B
Ans – c)
