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Answer the Following Question. What is Meant by Autonomous Consumption? Explain with the Help of a Diagram. - Economics

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प्रश्न

Answer the following question.
What is meant by autonomous consumption? Explain with the help of a diagram.

आकृती

उत्तर

At zero level of income, autonomous consumption is equal to OC

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2014-2015 (March) Set 1

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संबंधित प्रश्‍न

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


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 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, calculate the marginal propensity to save:

1) Income = 10,000

2) Autonomous consumption = 500

3) Consumption expenditure = 8,000


Define or explain the concept Average propensity to save .


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

Explain the concept of saving function. 


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


In a hypothetical economy, Mr. Neeraj has deposited ₹100 in the bank. If it is assumed that there is no other currency circulation in the economy, then the total money supply in the economy will be ____________.


The relation between APC and MPC in Keynes Psychological consumption function is ______.


Which of the following is correct?


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


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?


Identify the correctly matched pair from Column A to that of Column B:

Column A Column B
(1) MPC (a) Ratio of Savings to Consumption
(2) APC (b) Ratio of Consumption to Income
(3) APS (c)  Ratio of Consumption to Savings
(4) MPS (d) Ratio of Savings to Investment

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


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