Income Determination in Closed Economy Quiz Questions and Answers PDF - 21

MCQ 101: The type of investment that accounts both raw and finished items is known as

1. direct investment
2. foreign investment
3. planned investment
4. inventory investment

MCQ 102: A case of elasticity that is either be equal to unity or greater than unity or less and vice versa is known as

1. elasticity of demand
2. inelasticity of demand
3. elasticity of supply
4. inelasticity of supply

MCQ 103: Most of the production functions do not have straight lines and are

1. positive increasing
2. positive decreasing
3. negative decreasing
4. curved

MCQ 104: The type of industry where a single firm is able to supply a product or service at a lower cost as compare to the other firms prevailing in the market is known as

1. natural monopoly
2. monopoly resources
3. oligopoly
4. price leadership

MCQ 105: The proportion of an aggregate raise in pay that a consumer spends on the consumption of goods and services, as opposed to saving it is known as

1. marginal propensity to save
2. investment function
3. marginal propensity to consume
4. saving function