1.What fundamental assumption does the accelerator theory make?
2.What is the likely effect of a rightward shift in the Marginal Efficiency of Capital?
3.How is the marginal propensity to consume (MPC) defined?
4.What is a probable effect of reduced interest rates?
5.What happens to the average propensity to consume as income rises?
6.What is the effect of a rise in the marginal propensity to consume?
7.What is expected to happen to inventory levels when an economy starts to experience slower growth?
8.Given the Keynesian consumption function C = 10 + 0.8 Td, what is the marginal propensity to consume (MPC) when disposable income is Rs 1000?
9.Which of the following represents economic growth through an outward movement?
10.What does labour productivity quantify?
11.What happens to GDP during a recession?
12.Which of the following indicators is used to measure economic growth?
13.Which of the following actions is typically part of a reflationary policy?
14.What condition must be met for equilibrium in an open economy with four sectors?
15.What happens to the national income when injections exceed withdrawals?
16.What is a probable effect of a rise in a country's national income?
17.What is a probable effect of a rise in national income?
18.Who holds ownership of companies operating within the private sector?
19.When does a firm achieve normal profit?
20.At what point does a firm achieve allocative efficiency in its production?