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प्रश्न
Answer the following question :
Explain the development and non-development expenditures of government .
उत्तर
The government development and non-development expenditure are as follows :
(i) The government development expenditure is the expenditure that is incurred by it for the economic and social development of the country.
(ii) Expenditure on health, education, industrial development, social welfare, scientific research, etc. is considered as the government developmental expenditure.
(iii) The government non-development expenditure is the expenditure incurred on the essential service of the government.
(iv) Expenditure on administrative services, defence, judiciary, police, etc. is considered as the government non-developmental expenditure.
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संबंधित प्रश्न
............... consumption can not be zero.
(Induced / Autonomous / Government / Private)
In an economy investment is increased by Rs. 300 crore. If marginal propensity to consume is 2/3, calculate increase in national income.
Suppose marginal propensity to consume is 0.8. How much increase in investment is required to increase national income by Rs. 2000 crore? Calculate.
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
Assuming that increase in investment is Rs1000 crore and marginal propensity to consume is 0.9, explain the working of the multiplier.
Distinguish between :
Propensity to consume and Propensity to save.
Give reasons or explain the following statement:
Income which is not saved is consumption.
Answer in brief.
Explain the relationship between Income and Consumption.
Write answers in ‘one’ or ‘two’ paras each :
Explain the concept of saving function.
Give reason or explain the following statement
Demand for necessary goods is inelastic.
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 __________.
Answer the following question.
Which of the two, average propensity to consume or average propensity to save, can be negative, and why?
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 ______.
Complete the following schedule -
| Y | C | APC | MPC |
| 100 | 90 | ? | ? |
| 120 | 108 | ? | ? |
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
Which of the following points are related to The sum of MPC and MPS is always equal to autonomous investments?
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?
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.
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
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.
For a hypothetical economy, the government incurs an investment expenditure of ₹ 1,000 crore. If the value of Marginal Propensity to Save (MPS) falls from 0.25 to 0.10. Calculate the value of increase in income due to change in the value of Marginal Propensity to Save (MPS).
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.
APC can be greater than one, but MPC is always less than one. Give a reason to justify this phenomenon.
