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प्रश्न
Give reason or explain the following statement
Demand for necessary goods is inelastic.
उत्तर
When consumers buy about the same amount of commodity whether the price drops or falls, then the demand is called inelastic demand. For example demand for petrol for a cab driver is inelastic. Thus the demand for a commodity depends on the nature of Commodities, Commodities may be either necessaries or, luxuries. Normally, elasticity of demand for necessaries is inelastic and for luxurious demand tends to the elastic.
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संबंधित प्रश्न
............... consumption can not be zero.
(Induced / Autonomous / Government / Private)
Marginal propensity to consume + marginal propensity to save ......................... '
(zero \ one \ less \ more)
In an economy investment is increased by Rs. 300 crore. If marginal propensity to consume is 2/3, calculate increase in national income.
Define marginal propensity to consume
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
Suppose marginal propensity to consume is 0.8. How much increase in investment is required to increase national income by Rs. 2000 crore? Calculate.
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.
An economy is in equilibrium. Find marginal propensity to consume :
Autonomous consumption
Expenditure = 100
Investment expenditure = 100
National Income = 2,000
The value of marginal propensity to consume is 0.6 and initial income in the economy is Rs 100 crores. Prepare a schedule showing Income, Consumption and Saving. Also show the equilibrium level of income by assuming autonomous investment of Rs 80 crores.
An economy is in equilibrium. From the following data about an economy calculate autonomous consumption.
1) Income = 500
2) Marginal propensity to save = 0.2
3) Investment expenditure = 800
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
An economy is in equilibrium. From the following data calculate autonomous consumption.[4]
(i) Income = 10,000
(ii) Marginal propensity to consume = 0.2
(iii) Autonomous consumption = 1,500
An economy is in equilibrium. From the following data, calculate the marginal propensity to save:
1) Income = 10,000
2) Autonomous consumption = 500
3) Consumption expenditure = 8,000
Define marginal propensity to save.
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 Investment Expenditure from the following
National Income = 800
Marginal propensity to save = 0.3
Autonomous Consumption = 100
Explain the Keynesian psychological law of consumption.
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 |
……. |
…… |
Write explanatory answer:
Explain the subjective and objective factors determining consumption function.
Distinguish between :
Propensity to consume and Propensity to save.
Explain the following concepts or give definitions.
Consumption
State whether the following statements are True or False with reasons:
Increase in consumption expenditure is less than increase in income.
Choose the correct answer :
When income increases consumption and saving will _________.
Write short note on:
Paradox of value
Answer the following question.
State the objective factors determining consumption function.
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.
The consumption function of an economy is : C = 40 + 0.8 Y (amount in ₹ crores). Determine that level of income where the average propensity to consume will be one.
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 ____________.
What will be APC when APS = 0?
APC + APS = ?
Which one is correct?
The value of MPC is ______
Calculate equilibrium level of income for a hypothetical economy, for which it is given that:
- Autonomous Investments = ₹ 500 crores, and
- Consumption function, C = 100 + 0.80Y
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
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 points are related with marginal propensity to consume?
The sum of MPC and MPS is always equal to _____
In an economy, 75 percent of the increase in income is spent on consumption. Investment is increased by Rs 1,000 crore. Calculate the Total increase in income?
The rate of increase in ______ due to a unit increment in income is called marginal propensity to consume.
If MPS = 0, the value of multiplier will be ______
When we add up utility derived from consumption of all the units of the commodities, we get:
If the value of Average Propensity to Consume (APC) is 0.8 and National Income is ₹4,000 crores, the value of savings will be ______.
Average Propensity to Consume is equal to:
The marginal physical product of a factor must be ______ when the total physical product is falling.
If in an economy, the value of investment multiplier is 4 and Autonomous Consumption is ₹ 30 Crore, the relevant consumption function would be :
The value of ______ can be greater than one.
Complete the following table:
| INCOME (Y) |
SAVING (S) |
APC |
| 0 | (-) 12 | |
| 20 | 6 |
APC can be greater than one, but MPC is always less than one. Give a reason to justify this phenomenon.
