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प्रश्न
Answer the following question :
Explain the types of investment expenditure.
उत्तर
Investments refer to the addtion made in the total physical stock of capital. Following are the different types of Investment Expenditure :
(i) Financial Investment : Financial Investment refers to the investment made for the purchase of financial assets, such as shares, bonds, securities etc. It does not help in the production of goods and services directly.
(ii) Real Investment : Real Investment refers to the investment made in the production of goods and services such as machinery, tools, equipments. It is actually a net addition made to physical stock of capital.
(iii) Gross Investment : Gross Investment refers to the investment made in capital assets, buildings, raw materials, machines without deducting the amount of depreciation or capital consumption allowances.
(iv) Net Investment : Net Investment refers to the amount of investment made in capital assets like building raw material etc. after allowance has been made for depreciation. It is expressed as : Net Investment = Gross Investment – Depreciation.
(v) Autonomous Investment : Autonomous Investment refers to investment made irrespective of income, profit and rate of interest. It is income inelastic which means that it is not directly linked with profit. Such kind of investments are made by the government in the public sector, with a view to provide public utilities and to promote maximum social welfare.
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संबंधित प्रश्न
Marginal propensity to consume + marginal propensity to save ......................... '
(zero \ one \ less \ more)
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. Calculate national income from the following :
Autonomous consumption = 100
Marginal propensity to save = 0.2
Investment expenditure = 200
An economy is in equilibrium. Find 'autonomous consumption' from the following:
National income = 1000
Marginal propensity to consume = 0.8
Investment expenditure = 100
An economy is in equilibrium. Calculate the Marginal Propensity to Save from the following:
National Income = 1000
Autonomous Consumption = 100
Investment = 120
An economy is in equilibrium. Find the Investment Expenditure from the following :
National Income = 750
Autonomous Consumption = 200
Marginal Propensity to Save = 0.4
An economy is in equilibrium. Calculate Marginal Propensity to Save from the following :
National Income = 1,000
Autonomous Consumption = 100
Investment Expenditure = 200
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.
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.
What will be APC when APS = 0?
The value of MPC is ______
The relation between consumption and savings are ______
If MPC is less than one, it follows that ______
Which of the following points establish the relationship between MPS and MPC?
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?
What is saving per Income called?
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 ______.
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 :
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).
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.
APC can be greater than one, but MPC is always less than one. Give a reason to justify this phenomenon.
