Business Economics and Business and Commercial Knowledge - 5 mtp MTP

1. Ifa farmer sells wheat to miller for € 600 and miller sells flour to baker for = 800. The baker sells bread to consumer for = 1300, then the total value added in the process is: (a) %600 (b) % 800 (c) % 700 (d) % 1200

4. Which of the following fiscal policy measures would be suitable for addressing a deflationary gap or deficient demand? (a) Reduction in Taxes (b) Increase in Govt. Expenditure (c) Reduction in Public Debt (d) All of these

5. What is the value of Investment Multiplier when saving function is represented as S = -60 + 0.2Y? (a) 2 (b) 5 (c) 4 (d) 0.2

Which of the following will cause a leakage in the National Income of an economy? (a) Decrease in Expenditure (b) Decrease in Taxation (c) Increase in Imports (d) Botha&c The Government adopting Progressive taxation system to tax people on the level of their income is an example of which function of public finance? (a) Redistribution Function (b) Allocation Function (c) Normative Function (d) Stabilization The increase in cost of food, fuel and fertilizers in countries due to production of weapons…