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प्रश्न
Define marginal propensity to consume
उत्तर
Marginal Propensity to Consume (MPC) is the ratio of change in consumption (ΔC) to change in income (ΔY) i.e.`MPC=(DeltaC)/(DeltaY)`
Example:
`DeltaY=Rs500`
`DeltaC=Rs100`
`MPC=c=(DeltaC)/(DeltaY)`
`=100/500=0.2`
APPEARS IN
संबंधित प्रश्न
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 about an economy calculate autonomous consumption.
1) Income = 500
2) Marginal propensity to save = 0.2
3) Investment expenditure = 800
An economy is in equilibrium. Calculate the National Income from the following :
Autonomous Consumption = 120
Marginal Propensity to Save = 0.2
Investment Expenditure = 150
Explain the following concepts or give definitions.
Consumption
Answer in brief.
Explain the relationship between Income and Consumption.
Distinguish between Average propensity to consume and Marginal propensity to consume.
Define 'or' explain the following concept.
Propensity to save
Answer the following question.
What is meant by a propensity to consume?
Suppose in a hypothetical economy, the income rises from ₹ 5,000 crores to ₹ 6,000 crores. As a result, the consumption expenditure rises from ₹ 4,000 crores to ₹ 4,600 crores. Marginal propensity to consume in such a case would be __________.
The consumption function of an economy is : C = 40 + 0.8 Y (amount in ₹ crores). Determine that level of income where the average propensity to consume will be one.
Calculate the change in final income, if Marginal Propensity to Consume (MPC) is 0.8 and change in initial investment is ₹ 1,000 crores.
If the income is ₹ 400 crores and consumption is ₹ 250 crores, what will be the APC?
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.
______ buy goods and services for consumption and also supply factors of production.
Which of the following points are related with marginal propensity to consume?
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 ______
If MPS = 0, the value of multiplier will be ______
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 |
