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Published on: 13/05/2022
QB365 provides detailed and simple solution for every Creative Questions in class 12 Economics Subject. It will helps to get more idea about question pattern in every Creative questions with solution.
latest Creative 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 Test1.
List out the assumption of psychological Law of Consumption.
2.
Write a short note of induced investment?
3.
Explain the kinds of multiplier.
4.
What is autonomous investment?
5.
What is leakages of multiplier?
1.
(i) Ceteris paribus (constant extraneous variable).
(ii) Existence of Normal conditions.
(iii) Existence of a Laissez-faire capitalist economy.
2.
Induced investment is the expenditure on fixed assets and stocks which are required when level of income and demand in an economy goes up.
3.
(i) Tax Multiplier
(ii) Employment Multiplier
(iii) Foreign Trade Multiplier
(iv) Investment Multiplier
4.
Autonomous investment is the expenditure on capital formation, which is independent of the change in income, rate of interest or the rate of profit.
5.
(i) The multiplier assumes that those who earn income are likely to spend a proportion of their additional income on consumption.
(ii) In practice, people tend to spend their additional income on other items
(iii) Such expenses are known as leakages.
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