CHAPTER 3: NI EQUILIBRIUM (1123)

1.        If income is zero, saving

    

• A.       must be zero.

• B.       is less than zero.

• C.       is greater than zero.

• D.       can be either greater or less than zero.

2.        Induced consumption is consumers spending

• A.       on durable goods

• B.       that causes MPC to rise

• C.       that is dependent on changes in disposable income

• D.       that is independent of the level of disposable income

3.        What is the level of consumption if disposal income is RM650 billion, saving is RM400 billion and MPCis 0.5?

• A.       RM175 billion

• B.       RM250 billion

• C.       RM675 billion

• D.       RM800 billion

 

4.                          Investment may be decrease due to

• A.       an increase in interest rate.

• B.       an increase in business optimum.

• C.       a new technological advancement.

• D.       a decrease in tax rate

5.        National income equilibrium occurs when

• A.       total injections exceed total leakages

• B.       demand equals supply in the product market

• C.       aggregate supply the nominal value of national income

• D.       aggregate expenditures equals aggregate supply in an economy

6.                    Given the consumption function is C = 200 + 0.5 Y, the amount of income at breakeven is

• A.                   RM 400

• B.                   RM 500

• C.                   RM 200

• D.                   RM 300

7.                    Which of the following will decrease aggregate demand?

• A.          An increase in the price level

• B.          A decrease in nominal wages in the economy

• C.          A decrease in aggregate supply

• D.         A reduction in government spending

8.                    According to Islamic economics, investment should be based on

 

• A.          interest and profit

• B.          syariah principal

• C.          riba

• D.         zakat

9.                    Which of the following are components of aggregate expenditure?

• A.         Household consumption, business investment, government spending for goods and services and net exports

• B.         Household consumption, business investment, government spending for goods and services and exports

• C.         Household consumption, business investment, government spending for goods and services and saving.

• D.         Household consumption, business investment, government spending for goods and services and tax.

10.                    At the breakeven point

• A.         income is bigger than consumption

• B.         saving is positive

• C.         income equals consumption

• D.        saving is negative