In the consumption function C = a + bY, 'a' represents: MCQ with Answer and Explanation

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In the consumption function C = a + bY, 'a' represents:

A. autonomous consumption

B. marginal propensity to consume

C. investment

D. saving

Answer: Option A

Solution (By JKSSB Mock Tests)

In C = a + bY, 'a' is autonomous consumption, consumption independent of income.

This question belongs to: Economy GK Economy Set 1

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Question #1

Which of the following is the correct sequence of stages in the business cycle?

A. Expansion, Peak, Contraction, Trough

B. Peak, Expansion, Trough, Contraction

C. Trough, Peak, Expansion, Contraction

D. Contraction, Expansion, Peak, Trough

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Correct Answer: Option A

Explanation:
The typical stages of a business cycle are expansion (recovery), peak (boom), contraction (recession) and trough (depression), and then the cycle repeats.

This question belongs to: Economy GK Economy Set 1

Question #2

The 'Brexit' refers to the exit of which country from the European Union?

A. Germany

B. France

C. United Kingdom

D. Italy

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Correct Answer: Option C

Explanation:
Brexit refers to the United Kingdom's exit from the European Union.

This question belongs to: Economy GK Economy Set 1

Question #3

The 'tragedy of the commons' refers to:

A. underuse of private property

B. market success

C. overuse of common property resources

D. government failure

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Correct Answer: Option C

Explanation:
The tragedy of the commons is the overuse and depletion of common property resources.

This question belongs to: Economy GK Economy Set 1

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