30.

31.

32.

33.

34.

35.

36.

87.

Which of the following statements are true regarding Kuznet’s consumption function?
൫ Kuznet’s consumption function begins from the consumption axis.

Gi) Kuznet’s consumption function is quite close to 45° line.

(110) In Kuznet’s consumption function, the APC remains constant over a long period.

(iv) The MPC is significantly higher in Kuznet’s consumption function compared to that of

Keynes.
(^) All are true ൯) Only (i), (iii) and (iv) are true
(C) Only 0 ೩೧೮ (1) are true (D) None of the statements are true

Okun’s Law is the :
(^) Relationship between GDP and rate of Unemployment
(B)_ Relationship between GDP and Inflation
(C) Relationship between GDP and Deflation
(D) Relationship between GDP and Underemployment

The maximum value of the multiplier is :
(^) When MPC is one (B) When MPC is zero
(C) When APC is one (D) None of the above

Which of the following situation causes Investment Trap?
(A) When the investment demand is perfectly interest inelastic
(B) When the investment demand is perfectly interest elastic
(C) When the demand for money is perfectly interest inelastic
(D) When the demand for money is perfectly interest elastic

If the warranted rate of growth falls below the natural rate of growth, it leads to:

(A) Increasing unemployment (B) Decreasing Unemployment

(C) Constant Unemployment (D) None of the Above
Dynamic factors in trade theory refer to changes in:

(^) Factor Endowments (B) Technology

(C) Preference ൯) Allof the above
Critical Limit Hypothesis of public expenditure is associated with :

(A) J.B. Clark ൯ J.M. Clark

(C) Collin Clark (D) Adolph Wagnar
Tax base of Consumption VAT is :

(A) GNP-1 (B) GNP+1

( NNP-1 (D) NNP+1

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