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If increase in National Income is equal to increase in consumption, identity the value of Marginal Propensity to Save: - Economics

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प्रश्न

If increase in National Income is equal to increase in consumption, identity the value of Marginal Propensity to Save:

विकल्प

  • Equal to unity

  • Greater than one

  • Less than one

  • Equal to zero

MCQ

उत्तर

Equal to zero

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2022-2023 (March) Sample

वीडियो ट्यूटोरियलVIEW ALL [1]

संबंधित प्रश्न

............... consumption can not be zero.

(Induced / Autonomous / Government / Private)


Define marginal propensity to consume


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

An economy is in equilibrium. Calculate Marginal Propensity to Consume :

National income = 1000

Autonomous consumption expenditure = 200

Investment expenditure = 100


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. Find 'autonomous consumption' from the following:
National income = 1000
Marginal propensity to consume = 0.8
Investment expenditure = 100


Define or explain the following concept.

Autonomous Consumption.


Distinguish between :

Propensity to consume and Propensity to save.


Choose the correct answer :    

The income which is not spent on consumption is known as _________. 


Write answers in ‘one’ or ‘two’ paras each : 

Explain the concept of saving function. 


Define 'or' explain the following concept.

Propensity to save


Give reason or explain the following statement
Demand for necessary goods is inelastic.


Answer the following question.
In an economy, investment increased by 1,100 and as a result of it income increased by 5,500. Had the marginal propensity to save been 25 percent, what would have been the increase in income? 


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)

Complete the following schedule -

Y C APC MPC
100 90 ? ?
120 108 ? ?

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 simplest consumption function assumes ______


If the value of Average Propensity to Save (APS) is 0.2 and National Income is ₹4,000 crores, then consumption will be ______


An Economy is in equilibrium, calculate the Marginal Propensity to Save (MPS) from the following:

  1. National Income (Y) = ₹ 4,400
  2. Autonomous Consumption `bar("C")` = ₹ 1,000
  3. Investment Expenditure (I) = ₹ 70 

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