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An Economy is in Equilibrium. Find Marginal Propensity to Consume - Economics

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प्रश्न

An economy is in equilibrium. Find marginal propensity to consume :

Autonomous consumption

Expenditure = 100

Investment expenditure = 100

National Income = 2,000

उत्तर

Given that

Y= Rs 2000

`barC = Rs 100`

I= 100

As we know that

Y=C+I

`2000=barC+cY+I`

2000 = 100+c x 2000 + 100

2000 = 200 + c x 2000

Marginal propensity to consume(c) = 0.9

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संबंधित प्रश्न

An economy is in equilibrium. Calculate Marginal Propensity to Consume :

National income = 1000

Autonomous consumption expenditure = 200

Investment expenditure = 100


Find equilibrium national income:

Autonomous consumption expenditure = 120

Marginal propensity to consume = 0.9

Investment expenditure = 1100


In an economy an increase in investment by Rs 100 crore led to ‘increase’ in national by Rs 1000 crore. Find marginal propensity to consume.


Define marginal propensity to save.


An economy is in equilibrium. Find Marginal Propensity to Consume from the following:
National income = 2000
Autonomous consumption = 400
Investment expenditure = 200


An economy is in equilibrium. Find the Investment Expenditure from the following :
National Income = 750
Autonomous Consumption = 200
Marginal Propensity to Save = 0.4


Complete the following table:

Consumption expenditure

(Rs)

Savings

(Rs)

Income

(Rs)

Marginal

propensity to Consume

100

50

150

 

175

75

…….

……

250

100

…….

……

325

125

…….

……


Give reasons or explain the following statement: 

 Income which is not saved is consumption.  


 Answer in brief. 

Explain the relationship between Income and Consumption. 


Calculate the change in final income, if Marginal Propensity to Consume (MPC) is 0.8 and change in initial investment is ₹ 1,000 crores.


The relation between APC and MPC in Keynes Psychological consumption function is ______.


Which or is true?


A consumer spending on the purchase of goods regardless of the income in possession is an example of _______ consumption.


Complete the following schedule -

Y C APC MPC
100 90 ? ?
120 108 ? ?

Which of the following statement is true?


Calculate Autonomous Consumption expenditure from the following data about an economy which is in equilibrium:

National Income = Rs 1,200

Marginal Propensity to Save = 0.20

Investment expenditure = Rs 100


The sum of MPC and MPS is always equal to _____


Identify the correct pair of from the following Columns I and II:

Columns I Columns II
1. Total Product increases at an increasing rate and Marginal Product rises till it reaches its maximum point. (a) Second Stage
2. Total product increases at a decreasing rate and reaches maximum, and MP becomes zero. (b) First Stage
3. Total product also decreases and marginal product (MP) becomes negative. (c) Third Stage 
4. Improvement in technique of production and discovery of fixed factor substitute can postpone the operation of law for some time. (d) Fourth Stage

Income rises from ₹50,000 to ₹60,000, consumption increases from ₹40,000 to ₹48,000. In this situation, what will be the value of Marginal Propensity to Consume (MPC)?


If increase in National Income is equal to increase in Savings, the value of Marginal Propensity to Consume would be ______.


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