
FPEC1014 TUTORIAL 5
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University
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Easy
Kee Tuan Teng
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12 questions
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1.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
The ratio of a change in consumption to a change in national income is known as
?.
marginal propensity to consume
marginal propensity to save
average propensity to consume
average propensity to save
2.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What is autonomous expenditure?
household consumption when income is zero
zero household expenditure
household consumption that is equal to income
household expenditure that is maximized
3.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
Given
1 / [1 – MPC]
The formula above is to calculate ?.
depreciation
net exports
savings
multiplier
4.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
Which of the following is a component of injections in the economy?
savings
government expenditure
taxes
imports
5.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
In a closed economy, a RM 200 million increase in investment will increase national income by RM 400 million. What is the value of marginal propensity to save in this economy?
0.5
0.6
1.0
1.2
6.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
The basic idea behind the multiplier principle is that an increase in ?.
GDP will bring about a larger increase in equilibrium GDP
government spending causes a larger increase in tax revenues
investment expenditure will cause a larger increase in equilibrium GDP
consumer spending causes a larger increase in investment spending
7.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
Which of the following changes causes a leftward shift in the investment curve?
technological advancement
optimism about future profitability
an increase in business taxes
a fall in the price of raw materials
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