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प्रश्न
Answer the following question :
Explain the types of investment expenditure.
उत्तर
Investments refer to the addtion made in the total physical stock of capital. Following are the different types of Investment Expenditure :
(i) Financial Investment : Financial Investment refers to the investment made for the purchase of financial assets, such as shares, bonds, securities etc. It does not help in the production of goods and services directly.
(ii) Real Investment : Real Investment refers to the investment made in the production of goods and services such as machinery, tools, equipments. It is actually a net addition made to physical stock of capital.
(iii) Gross Investment : Gross Investment refers to the investment made in capital assets, buildings, raw materials, machines without deducting the amount of depreciation or capital consumption allowances.
(iv) Net Investment : Net Investment refers to the amount of investment made in capital assets like building raw material etc. after allowance has been made for depreciation. It is expressed as : Net Investment = Gross Investment – Depreciation.
(v) Autonomous Investment : Autonomous Investment refers to investment made irrespective of income, profit and rate of interest. It is income inelastic which means that it is not directly linked with profit. Such kind of investments are made by the government in the public sector, with a view to provide public utilities and to promote maximum social welfare.
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संबंधित प्रश्न
In an economy investment is increased by Rs. 300 crore. If marginal propensity to consume is 2/3, calculate increase in national income.
Find equilibrium national income:
Autonomous consumption expenditure = 120
Marginal propensity to consume = 0.9
Investment expenditure = 1100
An economy is in equilibrium. Find investment expenditure:
National Income =1,000
Autonomous Consumption =100
Marginal propensity to consume =0.8
Suppose marginal propensity to consume is 0.8. How much increase in investment is required to increase national income by Rs. 2000 crore? Calculate.
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
An economy is in equilibrium. Calculate national income from the following :
Autonomous consumption = 100
Marginal propensity to save = 0.2
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
An economy is in equilibrium. Calculate Marginal Propensity to Save from the following :
National Income = 1,000
Autonomous Consumption = 100
Investment Expenditure = 200
Define or explain the following concept.
Autonomous Consumption.
Write explanatory answer:
Explain the subjective and objective factors determining consumption function.
Give reasons or explain the following statement:
Income which is not saved is consumption.
Match the following Group ‘A’ with Group ‘B’:
| Group ‘A’ | Group ‘B’ | ||
| (a) | Giffen’s goods | (1) | Uses of commodities |
| (b) | Essential commodities | (2) | Keynes |
| (c) | Consumption | (3) | Primary function of bank |
| (d) | Consumption function | (4) | Inferior goods |
| (e) | Accept deposits | (5) | Money lender |
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(6) | Inelastic demand | |
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(7) | Luxurious commodities |
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(8) | Dr. Marshall |
Write answers in ‘one’ or ‘two’ paras each :
Explain the concept of saving function.
Define 'or' explain the following concept.
Propensity to save
Answer the following question.
What is meant by autonomous consumption? Explain with the help of a diagram.
If in an economy :
Change in initial Investment (∆I) = ₹ 700 crores
Marginal Propensity to Save (MPS) = 0.2
(a) Investment Multiplier (k)
(b) Change in final income (∆Y)
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 ____________.
The value of MPC is ______
A firm is able to sell any quantity of a good at a given price. The firm's Marginal Revenue will be ______
Which of the following statement is true?
Which of the following points are related to The sum of MPC and MPS is always equal to autonomous investments?
Which of the following points establish the relationship between MPS and MPC?
When we add up utility derived from consumption of all the units of the commodities, we get:
Identify the correctly matched pair from Column A to column B:
| Column A | Column B |
| (1) MPC = 0 | (a) K > 1 |
| (2) MPC = 1 | (b) K = Infinity |
| (3) MPC < 1 | (c) K = 0 |
| (4) MPC > MPS | (d) K < 1 |
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.
Complete the following table:
| INCOME (Y) |
SAVING (S) |
APC |
| 0 | (-) 12 | |
| 20 | 6 |
