Tag: income determination

Quizzes (3) Questions (24)

Questions Related to income determination

Multiple choice economics income determination unemployment and employment generation the short run fixed price analysis of the product market liquidity preference and profit

If aggregate demand exceeds aggregate supply, the income rises. 

  1. True

  2. False
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

True.

When Aggregate demand  is more than Aggregate supply, then the planned inventory would fall below the desired level. To bring back the Inventory at the desired level, the producers expand the output More output means more income. Rise in output means rise in AS and rise in income means rise in AD. 

Multiple choice economics income determination unemployment and employment generation the short run fixed price analysis of the product market liquidity preference and profit

If planned investment falls short of planned saving, then stock of goods tend to pile up.

  1. True

  2. False
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

True. 

When Planned investment is less than the planned savings , then the planned inventory will accumulate as their will be less consumption due to high savings in the economy.

Multiple choice economics income determination unemployment and employment generation the short run fixed price analysis of the product market liquidity preference and profit

Which of the following is a correct statement?

  1. Every registered taxable person other than ISD, non-resident tax payer & a person paying tax under section 10, 51 or 52 shall verify, validate, modify or delete the details communicated in Form GSTR 2A

  2. The details of outward supplies communicated in Form GSTR 2A cannot be modified or altered

  3. The registered taxable person should accept the details communicated in Form GSTR 2A by 12th of the succeeding month

  4. The registered taxable person other than ISD, non-resident tax payer & a person paying tax under section 10, 51 or 52 shall furnish the details of inward supplies of goods or services excluding tax payable on reverse charge basis.
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Under GST regulations, registered taxable persons (with specific exceptions) are required to verify, validate, modify, or delete the details of inward supplies communicated in Form GSTR 2A to ensure accurate tax reporting.

Multiple choice economics income determination unemployment and employment generation the short run fixed price analysis of the product market liquidity preference and profit

Aggregate supply is a function of the level of employment in the short run.

  1. True

  2. False
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

In the short run, the aggregate supply curve is typically modeled as a function of the level of employment, assuming other factors like capital and technology remain constant. As employment increases, output increases along the short-run aggregate supply curve.

Multiple choice economics income determination unemployment and employment generation the short run fixed price analysis of the product market liquidity preference and profit

The aggregate demand determines the flow of total expenditure.

  1. True

  2. False
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Aggregate demand represents the total demand for finished goods and services in an economy, which effectively dictates the total planned expenditure by households, firms, and the government.

Multiple choice economics income determination unemployment and employment generation the short run fixed price analysis of the product market liquidity preference and profit

Saving increases with increase in income.

  1. True

  2. False
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

According to the consumption function, as income rises, saving typically increases because the marginal propensity to save is positive. Households save a portion of additional income. While the relationship may not be strictly linear at very high income levels (the savings rate can plateau), the general principle that higher income leads to higher savings is well-established in economics.

Multiple choice economics income determination unemployment and employment generation the short run fixed price analysis of the product market liquidity preference and profit

Changes in level of income and employment can be brought by changing aggregate demand.

  1. True

  2. False
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

In Keynesian theory, aggregate demand is the primary driver of output and employment in the short run. Changes in aggregate demand lead to changes in the equilibrium level of income and employment.

Multiple choice economics income determination unemployment and employment generation the short run fixed price analysis of the product market liquidity preference and profit

In the short run, land, capital, technology remain constant.

  1. True

  2. False
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

In short-run macroeconomic models, factors of production such as land, capital stock, and the level of technology are held constant to isolate the effects of changes in labor and aggregate demand.