A way of helping depressed regions by having lower wages, lower local taxes and lower unemployment benefit has been suggested as ?
The PFI aims to deliver public projects and services using ?
New classical economists advocate reducing welfare payments to people who are unemployed or single parents. The economic reasoning uses was that this would ?
According to the Laffer curve as tax rates increase tax revenue ?
According to supply-side economists if taxes are cut so that people have an increased incentive to work and businesses have an increased incentive to invest ?
A group of economists argue that the real problem with the economy is high rates of taxation and heavy regulation that reduce the incentives to work save and invest these economists are ?
The accelerator theory of investment says that induced investment is determined by ?
According to the paradox of thrift increased efforts to save will cause ?
Assuming there is no government or foreign sector the formula for the multiplier is ?
Assuming there is no government or foreign sector, if the MPC is 8 the multiplier is ?
In macroeconomics, equilibrium is defined as that point at which ?
The proportion of an increase in national income paid in tax is ?
The marginal propensity to save (MPS) is ?
Disposable income is the part of households income left after the deduction of ?
In the equation C = a + bY, which describes the aggregate consumption function ‘b’ stands for ?
The total quantity of goods and services produced (or supplied) in an economy in a given period is ?
An outward shift in the demand for money other things being equals should lead to ?
To reduce the supply of money the government could ?
According to the quantity theory of money an increase in the money supply is most likely to lead to inflation if ?
The liquidity trap occurs when the demand for money ?
The difference between goes investment and net investment is ?
Investment is a unstable element of aggregate demand because it depends heavily on ?
A profit maximising firm will invest up to the level of investment where ?
The accelerator assumes ?
An outward shift in the Marginal Efficiency of Capital should ?
The marginal propensity to consume is equal to ?
Lower interest rates are likely to ?
An increase in the marginal propensity to consume will ?
When an economy first begins to grow more slowly ?
If the Keynesian consumption function is C = 10 + 0.8 Td when disposable income is Rs1000 the marginal propensity to consume is what ?
Economic growth can be seen by an outward shift of ?
Labour Productivity measures ?
In a recession, GDP ?
Economic growth can be measured by ?
A reflationary policy ?
For equilibrium in an open four sector economy ?
If injections are greater than withdrawals ?
An increase in national income is likely to ?
An increase in national income is ?
Companies in the private sector are owned by ?
Normal profit occurs when ?
To be allocatively efficient a firm must produce where ?
Profit is measured by ?
To maximise sales revenue a firm should produce where ?
Barriers to entry ?
In perfect price discrimination ?
In perfect price discrimination ?
For a firm operating in two markets and price discriminating the profit maximising condition is ?
Barriers to entry ?
If marginal revenue equals marginal cost ?
The total costs are Rs2000 and 10 units are produced. The marginal cost of an 11th unit is Rs1300 Which of the following is true ?

As income increase ?

A. The average propensity to consume gets nearer in value of the marginal propensity to consume
B. The average propensity to consume diverges in value from the marginal propensity to consume
C. The average propensity to consume falls
D. The average propensity to consume always approaches 0

Correct Answer: The average propensity to consume falls ✔

Last Updated: June 18, 2019