# MCQ Question for Class 12 Economics Chapter 10 Determination of Income and Employment

Check the below NCERT MCQ Class 12 Economics Chapter 10 Determination of Income and Employment with Answers available with PDF free download. MCQ Questions for Class 12 Economics with Answers were prepared based on the latest syllabus and examination pattern issued by CBSE, NCERT and KVS. Our teachers have provided below Determination of Income and Employment Class 12 Economics MCQs Questions with answers which will help students to revise and get more marks in exams

## Determination of Income and Employment Class 12 Economics MCQ Questions with Answers

Refer below for MCQ Class 12 Economics Chapter 10 Determination of Income and Employment with solutions. Solve questions and compare with the answers provided below

Question. Which of the followings value may be negative?
a-MPC
b- MPS
c- APS
d- APC

c- APS

Question. When MPS value is 0.25 , the value of investment multiplier will be?
a- 1.33
b- 2
c- 5
d- 4

d- 4

Question. Maximum value of investment multiplier is————- when the value of MPC————
a- Ten, zero
b- infinity, one
c- infinity, zero
d- none of them

b- infinity, one

Question. Multiplier is —————— related to the MPS.
a- Negatively
b- directly
c- not
d- rarely

Negatively

Question. If saving function of an economy is S = -50 + 0.25 Y, then the value of MPC is——-
a- 0.25
b- 1.25
c- (-0.25)
d- 0.75

d- 0.75

Question. If consumption expenditure is equal to the national income, then APS will be?
a- 1
b- o
c- (-1)
d- infinity

b- o

Question. If the value of APC is greater than one, APS will be?
a- Negative
b- Zero
c- Greater than one
d- None

a- Negative

Question. The ratio of change in saving and change in Income is———————-
a- MPC
b- APC
c- MPS
d- APS

c- MPS

Question. When MPC is increasing in the economy, the rate of investment multiplier will———
a- Rise
b- Fall
c- Either rise or fall
d- Neither rise nor fall

a- Rise

Question. In an economy investment increase by 100 Crores , and MPC is 0.57 , then National income will increase by———-
a- 500
b- 250
c- 570
d- 400