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प्रश्न
Answer the following question :
Explain the development and non-development expenditures of government .
उत्तर
The government development and non-development expenditure are as follows :
(i) The government development expenditure is the expenditure that is incurred by it for the economic and social development of the country.
(ii) Expenditure on health, education, industrial development, social welfare, scientific research, etc. is considered as the government developmental expenditure.
(iii) The government non-development expenditure is the expenditure incurred on the essential service of the government.
(iv) Expenditure on administrative services, defence, judiciary, police, etc. is considered as the government non-developmental expenditure.
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संबंधित प्रश्न
Distinguish between marginal propensity to consume and average propensity to consume. Give a numerical example.
Calculate investment expenditure from the following data about an economy which is in equilibrium:
National income = 1000
Marginal propensity to save = 0.25
Autonomous consumption expenditure = 200
An economy is in equilibrium. Find investment expenditure:
National Income =1,000
Autonomous Consumption =100
Marginal propensity to consume =0.8
An economy is in equilibrium. Find marginal propensity to consume :
Autonomous consumption
Expenditure = 100
Investment expenditure = 100
National Income = 2,000
An economy is in equilibrium. From the following data about an economy, calculate investment expenditure:
1) Income = 10000
2) Marginal propensity to consume = 0.9
3) Autonomous consumption = 100
Assuming that increase in investment is Rs. 800 crore and marginal propensity to consume is 0.8, explain the working of multiplier
If the marginal propensity to consume is greater than marginal propensity to save, the value of the multiplier will be (Choose the correct alternative)
(a) greater than 2
(b) less than 2
(c) equal to 2
(d) equal to 5
Complete the following table:
|
Consumption expenditure (Rs) |
Savings (Rs) |
Income (Rs) |
Marginal propensity to Consume |
|
100 |
50 |
150 |
|
|
175 |
75 |
……. |
…… |
|
250 |
100 |
……. |
…… |
|
325 |
125 |
……. |
…… |
Write explanatory answer
State and explain J.M. Keynes's ‘psychological law of consumption’.
Define or explain the concept Average propensity to save .
Fill in the blank with appropriate alternatives given in the bracket:
The part of income not spent is________.
Explain the following concepts or give definitions.
Consumption
Distinguish between Average propensity to consume and Marginal propensity to consume.
Write answers in ‘one’ or ‘two’ paras each :
Explain the concept of saving function.
Write short note on:
Paradox of value
Define 'or' explain the following concept.
Propensity to save
Answer the following question.
What is meant by a propensity to consume?
Answer the following question.
In an economy, investment increased by 1,100 and as a result of it income increased by 5,500. Had the marginal propensity to save been 25 percent, what would have been the increase in income?
In a hypothetical economy, Mr. Neeraj has deposited ₹100 in the bank. If it is assumed that there is no other currency circulation in the economy, then the total money supply in the economy will be ____________.
If the income is ₹ 400 crores and consumption is ₹ 250 crores, what will be the APC?
Calculate Change in Income (ΔY) for a hypothetical economy. Given that:
- Marginal Propensity to Consume (MPC) = 0.8, and
- Change in Investment (ΔI) = Rs. 1,000 crores
The sum of MPC and MPS is always equal to _____
If the value of Average Propensity to Save (APS) is 0.2 and National Income is ₹4,000 crores, then consumption will be ______
Identify the correctly matched pair from Column A to that of Column B:
| Column A | Column B | ||
| (1) | MPC | (a) | Ratio of Savings to Consumption |
| (2) | APC | (b) | Ratio of Consumption to Income |
| (3) | APS | (c) | Ratio of Consumption to Savings |
| (4) | MPS | (d) | Ratio of Savings to Investment |
If increase in National Income is equal to increase in consumption, identity the value of Marginal Propensity to Save:
An Economy is in equilibrium, calculate the Marginal Propensity to Save (MPS) from the following:
- National Income (Y) = ₹ 4,400
- Autonomous Consumption `bar("C")` = ₹ 1,000
- Investment Expenditure (I) = ₹ 70
Assertion (A): At the break-even level of income, the value of Average Propensity to Consume (APC) is zero.
Reason (R): Sum of Average Propensity to Consume (APC) and Average Propensity to Save (APS) is always equal to one.
The value of ______ can be greater than one.
How is APS obtained from the APC?
