Marks : 2

18. Marginal Propensity to consume is characterized as follows :-

a)
It is defined as the ratio of the change in consumption to the change in
income
b)
It is rate of change in the average propensity to consume as income
c) changes

d) It is derived by the formula mpc= change in c/change in y

It is derived by dividing the change in income by change in the
consumption expenditure

Marks : 2

26. J.M. Keynes presumed an economic model as a short period model in his analysis.

True
False

The social costs and benefits are the external economies and diseconomies

resulting from the activities, which are known as, "externalities".

Marks : 2

43. Features of stage of expansion in business cycle are :-

a)
Rise in national output
b) Rise in consumer and capital expenditure

c) Bank advances grow rapidly

Contraction of credit
d)
 Marks : 2

48.
Aggregate demand depends on the flow of .

Exp
Saving
Production
Investment

Macro-economies is a policy oriented science.

True
False