Which of the following is NOT a short-run factor influencing the Marginal Efficiency of Capital (MEC)?

Expected demand for the product.

According to Keynes, how is the Marginal Efficiency of Capital (MEC) defined in relation to the supply price and expected returns of a capital asset?

MEC is the ratio of prospective yield to supply price.

MEC is the rate of interest that equates present value of annuities to supply price.

MEC is the difference between supply price and expected yield.

MEC is the percentage change in supply price over time.

What is the relationship between the rate of interest and the Marginal Efficiency of Capital (MEC)?

The rate of interest is equal to the MEC.

The rate of interest is inversely related to the MEC.

The rate of interest has no impact on the MEC.

The rate of interest is directly related to the MEC.

How does an increase in income level affect investment according to the text?

It has no effect on investment.

It leads to excessive investment.

In the context of Marginal Efficiency of Capital (MEC), what does the term "prospective yield" refer to?

The cost of producing a capital asset.

The expected profitability of a capital asset.

The existing market value of a capital asset.

The depreciation value of a capital asset.

What is the role of the level of confidence in influencing the Marginal Efficiency of Capital (MEC)?

Confidence increases the MEC during periods of optimism.

Confidence reduces the MEC during periods of pessimism.

Confidence has no impact on the MEC.

Confidence lowers the supply price of capital assets.

According to the text, what effect does a rapidly growing population have on investment?

It has no effect on investment.

It leads to uncertainty in investment decisions.

What is the primary difference between the Marginal Efficiency of Capital (MEC) and the Marginal Efficiency of Investment (MEI)?

MEC considers the rate of discount, while MEI considers the interest rate.

MEC is concerned with investment change, while MEI is concerned with capital stock change.

MEC is a physical quantity, while MEI is a percentage rate.

MEC accounts for short-run factors, while MEI accounts for long-run factors.

How does the productive capacity of an industry impact the need for new investment?

Higher productive capacity reduces the need for new investment.

Higher productive capacity increases the need for new investment.

Productive capacity has no impact on new investment.

Productive capacity influences the propensity to consume.

Marginal Efficiency of Capital Free MCQ Practice Test with Solutions

Important Questions for Marginal Efficiency of Capital

Find all the important questions for Marginal Efficiency of Capital at EduRev.Get fully prepared for Marginal Efficiency of Capital with EduRev's comprehensive question bank and test resources. Our platform offers a diverse range of question papers covering various topics within the Marginal Efficiency of Capital syllabus. Whether you need to review specific subjects or assess your overall readiness, EduRev has you covered. The questions are designed to challenge you and help you gain confidence in tackling the actual exam. Maximize your chances of success by utilizing EduRev's extensive collection of Marginal Efficiency of Capital resources.

Marginal Efficiency of Capital MCQs with Answers

Prepare for the Marginal Efficiency of Capital within the B Com exam with comprehensive MCQs and answers at EduRev. Our platform offers a wide range of practice papers, question papers, and mock tests to familiarize you with the exam pattern and syllabus. Access the best books, study materials, and notes curated by toppers to enhance your preparation. Stay updated with the exam date and receive expert preparation tips and paper analysis. Visit EduRev's official website today and access a wealth of videos and coaching resources to excel in your exam.

Online Tests for Marginal Efficiency of Capital

Practice with a wide array of question papers that follow the exam pattern and syllabus. Our platform offers a user-friendly interface, allowing you to track your progress and identify areas for improvement. Access detailed solutions and explanations for each test to enhance your understanding of concepts. With EduRev's Online Tests, you can build confidence, boost your performance, and ace Marginal Efficiency of Capital with ease. Join thousands of successful students who have benefited from our trusted online resources.

Education Revolution