Matching Type MCQs of Determination of Income and Employment Macroeconomics class 12

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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 – IColumn – II
A) APCi) Can never be equal to 1
B) APSii) Can be less than 0
C) MPCiii) Can be more than 1
D) MPSiv) 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 – AColumn – B
i) Ex-ante SavingA – 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 – AColumn – B
i) Induced investmentA – It is income inelastic
ii) Autonomous InvestmentB – 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 – AColumn – B
i) Consumption FunctionA – Consumption + Invetment
ii) Aggregate DemandB – 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 – AColumn – B
i) Break even pointA – Value varies between 0 and 1
ii) Autonomous ConsumptionB – Propensity to Consume
iii) MPSC – Consumption = National Income
iv) APCD – Consumption at zero level of National Income
v) Consumption FunctionE – 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 – AColumn – B
i) Saving FunctionA – ∆C/∆Y
ii) MPCB – Value can be more than 1
iii) Ex-ante savingC – Break-Even Point
iv) Zero SavingsD – Propensity to Save
v) APCE – 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 – AColumn – B
i) APCA – ∆S/∆Y
ii) MPCB – S/Y
iii) MPSC – ∆C/∆Y
iv) APSD – 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 – AColumn – B
i) Consumption FunctionA) MPS
ii) 1 – MPCB) Saving = 0
iii) Break-even pointC) MPC
iv) Slope of Consumption CurveD) 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 – AColumn – B
A) When AD is more than ASi) Planned Inventory would rise above the desired level
B) Investment Multiplierii) ∆I/∆Y
C) When Saving is less than Investmentiii) Planned inventory would fail below the desired level
D) Multiplieriv) 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 – AColumn – B
i) When Planned saving is less than Planned InvestmentA) 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 – AColumn – B
i) In AD-AS approach, AD curve is represented asA – (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 – AColumn – B
i) Multiplier (k)A – National Income will rise
ii) When AD>ASB – Direct Relationship
iii) Underemployment EquilibriumC – AD = AS when the resources are not fully employed
iv) Multiplier and MPCD – Planned inventory falls below the desired level
v) When S<IE – 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 – AColumn – B
A – Quantitative Instrumenti) Margin Requirements
B – Decrease in Government Spendingii) Part of Fiscal Policy
C – Qualitative Instrumentiii) Legal Reserve Requirements
D – Increase in Taxesiv) 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 – AColumn – B
i) Excess DemandA – Leads to fall in the general price level
ii) Deficient DemandB – 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 – AColumn – B
i) Deflationary GapA – When AD>AS corresponding to full employment level of output in economy.
ii) Legal Reserve RequirementsB – Fiscal measure during Excesss Demand
iii) Excess DemandC – Aim to influence the total volume of credit in circulation.
iv) Decrease in Government SpendingD – Cash Reserve Ratio and Statutory Liquidity Ratio
v) Quantitative InstrumentsE – 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)

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Articles: 2015

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