Income Determination in Closed Economy Multiple Choice Questions (MCQ) PDF - 24

MCQ 116: The amount imports increase or decrease with each unit rise or decline in disposable income is known as

1. marginal propensity to save
2. marginal propensity to consume
3. marginal propensity to import
4. marginal propensity to export

MCQ 117: The slope of the offer curve is the point that tells the country's

1. autarky price
2. optimum price
3. pareto efficiency
4. equilibrium

MCQ 118: The concept that relates with the redirection of international trade due to the formation of a free trade area is called as

1. trade creation
2. trade diversion
3. trade bloc
4. trade deflection

MCQ 119: The quantity of a commodity, good or service that people are willing to buy for a particular span of time is known as

1. law of demand
2. budget line
3. quantity demanded
4. quantity supplied

MCQ 120: A country's exports or imports affect the national income of the other country which, in turn, affects the foreign trade and national income of the first country, this effect is known as

1. local repercussions
2. foreign repercussions
3. liable repercussions
4. social repercussions