The marginal propensity to consume is the ratio of: MCQ with Answer and Explanation

Question

Share Report Error

The marginal propensity to consume is the ratio of:

A. total consumption to total income

B. consumption to saving

C. change in saving to change in income

D. change in consumption to change in income

Answer: Option D

Solution (By JKSSB Mock Tests)

MPC is the ratio of change in consumption to change in income.

This question belongs to: Economy GK Economy Set 1

Request complete Subject PDF

Discuss this Question (0)

No comments yet. Be the first to start the discussion!

Practice More Economy Set 1 Questions

Question #1

Share Report

In the context of Indian public finance, 'Effective Revenue Deficit' is defined as:

A. Fiscal deficit minus interest payments

B. Primary deficit plus interest payments

C. Revenue deficit plus capital expenditure

D. Revenue deficit minus grants for creation of capital assets

View Answer & Solution Discuss

Get Complete Subject PDF for Economy GK

Correct Answer: Option D

Explanation:
Effective Revenue Deficit is Revenue Deficit minus grants given by the Centre to states and union territories for the creation of capital assets.

This question belongs to: Economy GK Economy Set 1

Question #2

Share Report

The 'GST Council' decisions are taken by:

A. unanimous consent only

B. simple majority with states having two-thirds weight

C. three-fourths majority with Centre having one-third weight

D. majority vote of all members

View Answer & Solution Discuss

Get Complete Subject PDF for Economy GK

Correct Answer: Option C

Explanation:
GST Council decisions require a three-fourths majority, with the Centre's vote having one-third weight and states two-thirds.

This question belongs to: Economy GK Economy Set 1

Question #3

Share Report

A current account surplus occurs when:

A. exports of goods, services and income exceed imports

B. capital outflows exceed inflows

C. imports exceed exports

D. foreign exchange reserves fall

View Answer & Solution Discuss

Get Complete Subject PDF for Economy GK

Correct Answer: Option A

Explanation:
A current account surplus occurs when exports of goods, services and income exceed imports.

This question belongs to: Economy GK Economy Set 1

Explore All Economy Set 1 MCQs