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Complete the Following Table - Economics

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प्रश्न

Complete the following table:-

Income (Rs) Consumption expenditure (Rs) Marginal propensity to save Average propensity to save
0 80    
100 140 0.4 .......
200 ........ ...... 0
....... 240 ........ 0.20
......... 260 0.8 0.35

उत्तर

Income (Rs) Consumption expenditure (Rs) Marginal propensity to save

Average propensity to save

(S ÷ Y)

Savings

(Y - C)

Marginal Propensity to Consume
0 80     -80  
100 140 0.4 -0.4 -40 0.6
200 200 0.4 0 0 0.6
300 240 0.6 0.20 60 0.8
400 260 0.8 0.35 140 0.2

 

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2012-2013 (March) Delhi Set 1

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संबंधित प्रश्न

Define marginal propensity to consume


Suppose marginal propensity to consume is 0.8. How much increase in investment is required to increase national income by Rs. 2000 crore? Calculate.


An economy is in equilibrium. Find autonomous consumption expenditure:

National Income =1,600

Investment Expenditure = 300

Marginal Propensity to Consume= 0.8


Assuming that increase in investment is Rs1000 crore and marginal propensity to consume is 0.9, explain the working of the multiplier.


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. Calculate the National Income from the following :
Autonomous Consumption = 120
Marginal Propensity to Save = 0.2
Investment Expenditure = 150


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:

Explain the subjective and objective factors determining consumption function.


If in an economy :
Change in initial Investment (∆I) = ₹ 700 crores
Marginal Propensity to Save (MPS) = 0.2

Find the values of the following :
(a) Investment Multiplier (k)
(b) Change in final income (∆Y)

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


What will be APC when APS = 0?


If the income is ₹ 400 crores and consumption is ₹ 250 crores, what will be the APC?


Which of the following points are related to The sum of MPC and MPS is always equal to autonomous investments? 


If MPC is 0.9, what is the value of the multiplier? How much investment is needed to increase national income by Rs 5,000 Crores


The simplest consumption function assumes ______


When we add up utility derived from consumption of all the units of the commodities, we get:


If in an economy, the value of investment multiplier is 4 and Autonomous Consumption is ₹ 30 Crore, the relevant consumption function would be :


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.


For a hypothetical economy, the government incurs an investment expenditure of ₹ 1,000 crore. If the value of Marginal Propensity to Save (MPS) falls from 0.25 to 0.10. Calculate the value of increase in income due to change in the value of Marginal Propensity to Save (MPS).


What is meant by autonomous consumption expenditure? Show it on a diagram.


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