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Published on: 13/05/2022
QB365 provides detailed and simple solution for every book back questions in class 12 Economics subject.It will helps to get more idea about question pattern in every book back questions with solution.
latest Book back QuestionsDownload Tamil Nadu 12th Standard Economics question papers, model tests, one-mark questions, important questions, and public exam papers in PDF format. Free study materials and answer keys for TN State Board students.
Questions + Answers key
Take MCQ Economics Test3 Marks
1.
Differentiate autonomous and induced investment.
2.
Explain any three subjective and objective factors influencing the consumption function.
3.
4.
State the concept of super multiplier.
5.
Specify the limitations of the multiplier.
3 Marks
1.
| S. No | Autonomous Investment | Induced Investment |
|---|---|---|
| 2. | Independent | Planned |
| 3. | Income inelastic | Income elastic |
| 4. | Welfare motive | Profit motive |
2.
Motive of precaution
To build a reserve against unforeseen contingencies, (c.g.) accidents
Motive of foresight
The desire to provide for anticipated future needs, (c.g.) Old age
Motive of calculation
The desire to enjoy interest and appreciation.
Income Distribution
According to VKRV Rao if income is equally distributed propensity to consume increases
Price level
When price falls, real income rises; people consume more and save more.
Wage level
Consumption expenditure increases with a rise in wages.
3.
4.
(i) Hicks combined multiplier and accelerator to measure the total effect of initial investment on income.
(ii) Both induced consumption and induced investment are combined.
(iii) Also called leverage effect, it may lead the economy to a very high or low level of income propagation.
\(\mathrm{Y}=\mathrm{C}+\mathrm{I}_{\mathrm{A}}+\mathrm{I}_{\mathrm{P}}\)
Y = aggregate income
C = consumption expenditure
IA = autonomous investment
IB = induced private investment
5.
(i) Payment towards past debts
(ii) Purchase of existing wealth
(iii) Import of goods and services
(iv) Non availability of consumer goods
(v) Full employment situation
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