Practice Investment (I) - 2.2.4.2 | Chapter 2: Theory of Income and Employment | ICSE Class 12 Economics
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Practice Questions

Test your understanding with targeted questions related to the topic.

Question 1

Easy

What does the 'I' in AD = C + I + G + (X-M) represent?

💡 Hint: Think about business expenditures.

Question 2

Easy

Name one factor that influences investment.

💡 Hint: Think along the lines of how businesses make decisions.

Practice 4 more questions and get performance evaluation

Interactive Quizzes

Engage in quick quizzes to reinforce what you've learned and check your comprehension.

Question 1

What is investment a critical component of?

  • Aggregate Supply
  • Aggregate Demand
  • Total Product

💡 Hint: Look back at the formula.

Question 2

Interest rates only affect consumer spending and not businesses.

  • True
  • False

💡 Hint: Think about who borrows money.

Solve 1 more question and get performance evaluation

Challenge Problems

Push your limits with challenges.

Question 1

Given a scenario where the government implements a tax cut for businesses, predict the expected outcomes on investment and employment.

💡 Hint: Consider the effects of increased funds for investment.

Question 2

Analyze a situation where consumer confidence drops significantly. How could this affect business investment and the broader economy?

💡 Hint: Think about how expectations shape investment decisions.

Challenge and get performance evaluation