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प्रश्न
Calculate 'Marginal Propensity to Consume' from the following data about an economy which is in equilibrium:
National income = 800
Autonomous consumption expenditure = 100
Investment expenditure = 100
उत्तर
Given that
National Income (Y) = 800
Autonomous consumption expenditure(C) = 100
Investment expenditure (I) = 100
As we know that
Y = C + I
`C = barC + cY`
`Y = barC + cY + I`
800 = 100 + C(800) + 100
600 = 800C
C = 0.75
Therefore, Marginal Propensity to Consume (MPC) is 0.75
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संबंधित प्रश्न
Explain the various methods of measuring national income.
Find national income and private income:
(Rs crore)
(i) Wages and salaries 1,000
(ii) Net current transfer to abroad 20
(iii) Net factor income paid to abroad 10
(iv) Profit 400
(v) National debt interest 120
(vi) Social security contributions by employers 100
(vii) Current transfers from government 60
(viii) National income accruing to government 150
(ix) Rent 200
(x) Interest 300
(xi) Royalty 50
Calculate 'Net National Product at Market Price' and 'Personal Income'.
| (Rs crore) | ||
| (i) | Transfer payments by government | 7 |
| (ii) | Government final consumption expenditure | 50 |
| (iii) | Net imports | -10 |
| (iv) | Net domestic fixed capital formation | 60 |
| (v) | Private final consumption expenditure | 300 |
| (vi) | Private income | 280 |
| (vii) | Net factor income to abroad | -5 |
| (viii) | Closing stock | 8 |
| (ix) | Opening stock | 8 |
| (x) | Depreciation | 12 |
| (xi) | Corporate tax | 60 |
| Xii | Retained earnings of corporatio | 20 |
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Addition to stocks during a year
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Total Revenue = Total quantity x Price.
State whether the following statements are TRUE or FALSE with reason.
National income is a flow concept.
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Explain the income method of measuring national income.
State with reason whether you agree or disagree with the following statement:
The money value of intermediate goods is not included in the estimation of national income.
Answer in detail:
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Distinguish between:
Output method of measuring national income and Income method of measuring national income.
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In crores |
| Consumption | 200 |
| Investment | 300 |
| Govt.Expenditure | 400 |
| Net export | - 100 |
| Net receipts | - 50 |
| Depreciation | 100 |
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