Q.1)-Payment of water charges by the farmers to the government represents
- Intermediate consumption
- Final consumption
- Fixed investment
- Inventory investment
Q.2)-The difference between the price the consumer is prepared to pay for a commodity and the price which he actually pays is called
- Consumer's Surplus
- Producer's Surplus
- Landlord's Surplus
- Worker's Surplus
Q.3)- 'Marginal efficiency of capital is
- Expected rate of return on new investment
- Expected rate of return on existing investment
- Difference between rate of profit and rate of interest
- Value of output per unit of capital invested
Q.4)-Consumption function refers to
- Relationship between income and employment
- Relationship between savings and investment
- Relationship between input and output
- Relationship between income and consumption
Q.5)-The functional relationship between income and consumption expenditure is explained by
- Consumer's Surplus
- Law of Demand
- Law of Supply
- Keynes's psychological law of consumption
Q.6)-Income and consumption are:
- Inversely related
- Directly related
- Partially related
- Unrelated
Q.7)-Which of the following relationship always holds true?
- Income = Consumption + Investment
- Income = Consumption + Saving
- Saving = Investment
- Income = Consumption + Saving + Investment
Q.8)-The Keynesian consumption function shows a relation between
- Aggregate consumption and total population
- Aggregate consumption and general price level
- Aggregate consumption and aggregate income
- Aggregate consumption and interest rate
Q.9)-Over short period, when income rises, average propensity to consume usually
- Rises
- Falls
- Remains constant
- Fluctuates
Q.10)-According to Marshall, the basis of consumer surplus is-
- Law of diminshing marginal utility
- Law of equi-marginal utility
- Law of proportions
- All of the above
