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प्रश्न
Calculate Marginal Propensity to Consume from the following data about an economy
Which is an equilibrium:
National income = 2000
Autonomous Consumption expenditure = 200
Investment expenditure = 100
उत्तर
Given that
National income (Y) = 2000
Autonomous consumption expenditure = 200
Investment expenditure = 100
As we know that
Y = C + I
Since `C = barC + cY` we have
`Y = barC + cY + I`
By substituting the given values,we get
`2000 = 200 + c(2000) + 100`
`1700 = 2000c`
c = 0.85
Therfore, the marginal propensity to consume is 0.8
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संबंधित प्रश्न
Define marginal propensity to consume
Complete the following table:-
| Income (Rs) | Consumption expenditure (Rs) | Marginal propensity to save | Average propensity to save |
| 0 | 80 | ||
| 100 | 140 | 0.4 | ....... |
| 200 | ........ | ...... | 0 |
| ....... | 240 | ........ | 0.20 |
| ......... | 260 | 0.8 | 0.35 |
An economy is in equilibrium. Find autonomous consumption expenditure:
National Income =1,600
Investment Expenditure = 300
Marginal Propensity to Consume= 0.8
Assuming that increase in investment is Rs1000 crore and marginal propensity to consume is 0.9, explain the working of the multiplier.
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
An economy is in equilibrium. Find the Investment Expenditure from the following :
National Income = 750
Autonomous Consumption = 200
Marginal Propensity to Save = 0.4
Define or explain the concept Average propensity to save .
Give reasons or explain the following statement:
Income which is not saved is consumption.
Choose the correct answer :
The income which is not spent on consumption is known as _________.
State whether the following statements are True or False with reasons:
Increase in consumption expenditure is less than increase in income.
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?
The value of MPC is ______
Complete the following schedule -
| Y | C | APC | MPC |
| 100 | 90 | ? | ? |
| 120 | 108 | ? | ? |
Which of the following statement is true?
MPC = 1 − MPS. It is ______
Which of the following points are related to The sum of MPC and MPS is always equal to autonomous investments?
What is "MPS" or the 'marginal propensity' to save?
Income rises from ₹50,000 to ₹60,000, consumption increases from ₹40,000 to ₹48,000. In this situation, what will be the value of Marginal Propensity to Consume (MPC)?
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 |
