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प्रश्न
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.
पर्याय
Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A).
Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of Assertion (A).
Assertion (A) is true, but Reason (R) is false.
Assertion (A) is false, but Reason (R) is true.
उत्तर
Assertion (A) is false, but Reason (R) is true.
Explanation:
At Break-even level of Income, Consumption equals Income. Here, APC = 1. Sum of APC and APS is 1 as whole income is either consumed or saved.
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संबंधित प्रश्न
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.
Answer in brief.
Explain the relationship between Income and Consumption.
Distinguish between Average propensity to consume and Marginal propensity to consume.
Answer the following question.
What is meant by a propensity to consume?
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
APC + APS = ?
Which or is true?
The relation between consumption and savings are ______
A consumer spending on the purchase of goods regardless of the income in possession is an example of _______ consumption.
A firm is able to sell any quantity of a good at a given price. The firm's Marginal Revenue will be ______
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 "MPS" or the 'marginal propensity' to save?
If the value of Average Propensity to Save (APS) is 0.2 and National Income is ₹4,000 crores, then consumption will be ______
The marginal physical product of a factor must be ______ when the total physical product is falling.
How is APS obtained from the APC?
