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Marginal Propensity to Consume + Marginal Propensity to Save - Economics

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प्रश्न

Marginal propensity to consume + marginal propensity to save ......................... '

(zero \ one \ less \ more)

उत्तर

Marginal propensity to consume + marginal propensity to save one.

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  क्या इस प्रश्न या उत्तर में कोई त्रुटि है?
2014-2015 (March)

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संबंधित प्रश्न

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

(Induced / Autonomous / Government / Private)


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.


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


Find equilibrium national income:

Autonomous consumption expenditure = 120

Marginal propensity to consume = 0.9

Investment expenditure = 1100


An economy is in equilibrium. Find autonomous consumption expenditure:

National Income =1,600

Investment Expenditure = 300

Marginal Propensity to Consume= 0.8


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


Define marginal propensity to save.


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


Explain the Keynesian psychological law of consumption.


An economy is in equilibrium. Calculate Marginal Propensity to Save from the following :
National Income = 1,000
Autonomous Consumption = 100
Investment Expenditure = 200


 Fill in the blank with appropriate alternatives given in the bracket: 

The part of income not spent is________. 


Match the following Group ‘A’ with Group ‘B’:  

Group ‘A’ Group ‘B’
(a) Giffen’s goods (1) Uses of commodities
(b) Essential commodities (2) Keynes
(c) Consumption (3) Primary function of bank
(d) Consumption function (4) Inferior goods
(e) Accept deposits (5) Money lender
 

 

(6) Inelastic demand

 

 

(7) Luxurious commodities

 

 

(8) Dr. Marshall

Explain the following concepts or give definitions. 

Consumption


Distinguish between Average propensity to consume and Marginal propensity to consume.

 


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.
State the objective factors determining consumption function.


Answer the following question.
What is meant by a propensity to consume?


Suppose in a hypothetical economy, the income rises from  5,000 crores to  6,000 crores. As a result, the consumption expenditure rises from ₹ 4,000 crores to ₹ 4,600 crores. Marginal propensity to consume in such a case would be __________.


An economy is in equilibrium. From the following data calculate investment expenditure :

(i) Marginal propensity to consume = 0·9
(ii) Autonomous consumption = 200
(iii) Level of income = 10000


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? 


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


APC + APS = ?


Which or is true?


Which one is correct?


Which of the following is correct?


Complete the following schedule -

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

Calculate Change in Income (ΔY) for a hypothetical economy. Given that:

  1. Marginal Propensity to Consume (MPC) = 0.8, and
  2. Change in Investment (ΔI) = Rs. 1,000 crores

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 with marginal propensity to consume?


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


Identify the correct pair of from the following Columns I and II:

Columns I Columns II
1. Total Product increases at an increasing rate and Marginal Product rises till it reaches its maximum point. (a) Second Stage
2. Total product increases at a decreasing rate and reaches maximum, and MP becomes zero. (b) First Stage
3. Total product also decreases and marginal product (MP) becomes negative. (c) Third Stage 
4. Improvement in technique of production and discovery of fixed factor substitute can postpone the operation of law for some time. (d) Fourth Stage

The rate of increase in ______ due to a unit increment in income is called marginal propensity to consume.


What is saving per Income called?


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


If the marginal propensity to consume is greater than marginal propensity to save, the value of the multiplier will be:


Identify the correctly matched pair from Column A to column B:

Column A Column B
(1) MPC = 0 (a) K > 1
(2) MPC = 1 (b) K = Infinity
(3) MPC < 1 (c) K = 0
(4) MPC > MPS (d) K < 1

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


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


Assertion (A): Saving curve makes a negative intercept on the vertical axis at zero level of income.

Reason (R): Saving function refers to the functional relationship between saving and income.


'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.


If increase in National Income is equal to increase in Savings, the value of Marginal Propensity to Consume would be ______.


When National Income rises from ₹ 600 Cr. to ₹ 1000 Cr., the consumption expenditure increases from ₹ 500 Cr. to ₹ 800 Cr. Calculate MPC and hence the value of Investment Multiplier.


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