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प्रश्न
Distinguish between marginal propensity to consume and average propensity to consume. Give a numerical example.
Distinguish between Average Propensity to Consume and Marginal Propensity to consume using a numerical example.
उत्तर
| Marginal Propensity to Consume | Average Propensity to Consume |
| Ratio of change in consumption (ΔC) to change in income (ΔY) | Ratio of consumption expenditure (C) to level of income (Y) |
|
Example: ΔY = Rs500 ΔC = Rs100 MPC = c = ΔC/ΔY = 100/500 = 0.2 |
Example: Y = Rs1,200 C = Rs900 APC = C/Y = 900/1200 = 0.75 |
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संबंधित प्रश्न
The value of marginal propensity to consume is 0.6 and initial income in the economy is Rs 100 crores. Prepare a schedule showing Income, Consumption and Saving. Also show the equilibrium level of income by assuming autonomous investment of Rs 80 crores.
An economy is in equilibrium. Calculate national income from the following :
Autonomous consumption = 100
Marginal propensity to save = 0.2
Investment expenditure = 200
An economy is in equilibrium. Calculate the Marginal Propensity to Save from the following:
National Income = 1000
Autonomous Consumption = 100
Investment = 120
An economy is in equilibrium. Calculate Marginal Propensity to Save from the following :
National Income = 1,000
Autonomous Consumption = 100
Investment Expenditure = 200
Write explanatory answer:
Explain the subjective and objective factors determining consumption function.
Distinguish between :
Propensity to consume and Propensity to save.
Give reasons or explain the following statement:
Income which is not saved is consumption.
State whether the following statements are True or False with reasons:
Increase in consumption expenditure is less than increase in income.
Define 'or' explain the following concept.
Propensity to save
Answer the following question.
State the objective factors determining consumption function.
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
The relation between APC and MPC in Keynes Psychological consumption function is ______.
Which of the following is correct?
Calculate equilibrium level of income for a hypothetical economy, for which it is given that:
- Autonomous Investments = ₹ 500 crores, and
- Consumption function, C = 100 + 0.80Y
The simplest consumption function assumes ______
When we add up utility derived from consumption of all the units of the commodities, we get:
If the value of Average Propensity to Consume (APC) is 0.8 and National Income is ₹4,000 crores, the value of savings 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 |
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.
APC can be greater than one, but MPC is always less than one. Give a reason to justify this phenomenon.
