Advertisements
Advertisements
प्रश्न
Distinguish between marginal propensity to consume and average propensity to consume. Give a numerical example.
Distinguish between Average Propensity to Consume and Marginal Propensity to consume using a numerical example.
उत्तर
| Marginal Propensity to Consume | Average Propensity to Consume |
| Ratio of change in consumption (ΔC) to change in income (ΔY) | Ratio of consumption expenditure (C) to level of income (Y) |
|
Example: ΔY = Rs500 ΔC = Rs100 MPC = c = ΔC/ΔY = 100/500 = 0.2 |
Example: Y = Rs1,200 C = Rs900 APC = C/Y = 900/1200 = 0.75 |
APPEARS IN
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
An economy is in equilibrium. Calculate the Investment Expenditure from the following
National Income = 800
Marginal propensity to save = 0.3
Autonomous Consumption = 100
Define or explain the concept Average propensity to save .
Answer the following question.
What is meant by a propensity to consume?
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)
APC + APS = ?
Which of the following is correct?
The relation between consumption and savings are ______
Which of the following points are related with marginal propensity to consume?
The rate of increase in ______ due to a unit increment in income is called marginal propensity to consume.
Which of the following statements is not correct?
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
The value of ______ can be greater than one.
If increase in National Income is equal to increase in Savings, the value of Marginal Propensity to Consume would be ______.
How is APS obtained from the APC?
