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प्रश्न
Give reasons or explain the following statement:
Income which is not saved is consumption.
उत्तर
Income has two major components i.e., consumption and savings. This means an individual can utilise his/her income in two ways, either by consuming it (by purchasing goods and services or for investment purposes) or by saving it (by depositting it in banks). Thus, it can be said that income which is not saved is consumption.
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संबंधित प्रश्न
Distinguish between marginal propensity to consume and average propensity to consume. Give a numerical example.
In an economy investment is increased by Rs. 300 crore. If marginal propensity to consume is 2/3, calculate increase in national income.
An economy is in equilibrium. Calculate Marginal Propensity to Consume :
National income = 1000
Autonomous consumption expenditure = 200
Investment expenditure = 100
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.
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
An economy is in equilibrium. Find autonomous consumption expenditure:
National Income =1,600
Investment Expenditure = 300
Marginal Propensity to Consume= 0.8
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.
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
An economy is in equilibrium. Find Marginal Propensity to Consume from the following:
National income = 2000
Autonomous consumption = 400
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
Calculate Marginal Propensity to Consume from the following data about an economy
Which is an equilibrium:
National income = 2000
Autonomous Consumption expenditure = 200
Investment expenditure = 100
Complete the following table:
|
Consumption expenditure (Rs) |
Savings (Rs) |
Income (Rs) |
Marginal propensity to Consume |
|
100 |
50 |
150 |
|
|
175 |
75 |
……. |
…… |
|
250 |
100 |
……. |
…… |
|
325 |
125 |
……. |
…… |
Answer the following question :
Explain the types of investment expenditure.
Answer the following question :
Explain the development and non-development expenditures of government .
Write explanatory answer
State and explain J.M. Keynes's ‘psychological law of consumption’.
Define or explain the following concept.
Autonomous 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________.
Answer in brief.
Explain the relationship between Income and Consumption.
Write short note on:
Paradox of value
Define 'or' explain the following concept.
Propensity to save
Define or explain the following concept
Marginal Cost.
Answer the following question.
Which of the two, average propensity to consume or average propensity to save, can be negative, and why?
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)
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?
The relation between APC and MPC in Keynes Psychological consumption function is ______.
Which one is correct?
Which of the following 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
______ buy goods and services for consumption and also supply factors of production.
Which of the following statement is true?
MPC = 1 − MPS. It is ______
Calculate Autonomous Consumption expenditure from the following data about an economy which is in equilibrium:
National Income = Rs 1,200
Marginal Propensity to Save = 0.20
Investment expenditure = Rs 100
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 are related with marginal propensity to consume?
What is "MPS" or the 'marginal propensity' to save?
The rate of increase in ______ due to a unit increment in income is called marginal propensity to consume.
If the marginal propensity to consume is greater than marginal propensity to save, the value of the multiplier will be:
In an economy 75 percent of the increase in income is spent on consumption. Investment increased by ₹ 1,000 crore.
Calculate the total increase in income on the basis of given information.
'Consumption function curve of an involuntary unemployed workers start from some positive level on Y-axis even at zero level of Income'. Justify the given statement.
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.
If increase in National Income is equal to increase in Savings, the value of Marginal Propensity to Consume would be ______.
Complete the following table:
| INCOME (Y) |
SAVING (S) |
APC |
| 0 | (-) 12 | |
| 20 | 6 |
How is APS obtained from the APC?
