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प्रश्न
Give reasons or explain the following statement:
Income which is not saved is consumption.
उत्तर
Income has two major components i.e., consumption and savings. This means an individual can utilise his/her income in two ways, either by consuming it (by purchasing goods and services or for investment purposes) or by saving it (by depositting it in banks). Thus, it can be said that income which is not saved is consumption.
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संबंधित प्रश्न
............... consumption can not be zero.
(Induced / Autonomous / Government / Private)
In an economy investment is increased by Rs. 300 crore. If marginal propensity to consume is 2/3, calculate increase in national income.
Calculate investment expenditure from the following data about an economy which is in equilibrium:
National income = 1000
Marginal propensity to save = 0.25
Autonomous consumption expenditure = 200
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 |
Find equilibrium national income:
Autonomous consumption expenditure = 120
Marginal propensity to consume = 0.9
Investment expenditure = 1100
Suppose marginal propensity to consume is 0.8. How much increase in investment is required to increase national income by Rs. 2000 crore? Calculate.
An economy is in equilibrium. Find marginal propensity to consume :
Autonomous consumption
Expenditure = 100
Investment expenditure = 100
National Income = 2,000
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
Define marginal propensity to save.
An economy is in equilibrium. Find Marginal Propensity to Consume from the following:
National income = 2000
Autonomous consumption = 400
Investment expenditure = 200
An economy is in equilibrium. Calculate the National Income from the following :
Autonomous Consumption = 120
Marginal Propensity to Save = 0.2
Investment Expenditure = 150
An economy is in equilibrium. Calculate Autonomous Consumption from the following :
National Income = 1,250
Marginal Propensity to Save = 0.2
Investment Expenditure = 150
An economy is in equilibrium. Calculate Marginal Propensity to Save from the following :
National Income = 1,000
Autonomous Consumption = 100
Investment Expenditure = 200
Complete the following table:
|
Consumption expenditure (Rs) |
Savings (Rs) |
Income (Rs) |
Marginal propensity to Consume |
|
100 |
50 |
150 |
|
|
175 |
75 |
……. |
…… |
|
250 |
100 |
……. |
…… |
|
325 |
125 |
……. |
…… |
Answer the following question :
Explain the development and non-development expenditures of government .
Define or explain the following concept.
Autonomous Consumption.
Define or explain the concept Average propensity to save .
Distinguish between :
Propensity to consume and Propensity to save.
Fill in the blank with appropriate alternatives given in the bracket:
The part of income not spent is________.
Explain the following concepts or give definitions.
Consumption
Distinguish between Average propensity to consume and Marginal propensity to consume.
Write answers in ‘one’ or ‘two’ paras each :
Explain the concept of saving function.
Define or explain the following concept
Marginal Cost.
Give reason or explain the following statement
Demand for necessary goods is inelastic.
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 __________.
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?
If in an economy :
Change in initial Investment (∆I) = ₹ 700 crores
Marginal Propensity to Save (MPS) = 0.2
(a) Investment Multiplier (k)
(b) Change in final income (∆Y)
MPC = MPS = ?
Calculate Change in Income (ΔY) for a hypothetical economy. Given that:
- Marginal Propensity to Consume (MPC) = 0.8, and
- Change in Investment (ΔI) = Rs. 1,000 crores
A firm is able to sell any quantity of a good at a given price. The firm's Marginal Revenue will be ______
If MPC is less than one, it follows that ______
Marginal Propensity to Save is equal to ______
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
Which of the following points establish the relationship between MPS and MPC?
What is "MPS" or the 'marginal propensity' to save?
Why public goods must be provided by the government?
The rate of increase in ______ due to a unit increment in income is called marginal propensity to consume.
The simplest consumption function assumes ______
When we add up utility derived from consumption of all the units of the commodities, we get:
Which of the following statements is not correct?
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)?
If in an economy, the value of investment multiplier is 4 and Autonomous Consumption is ₹ 30 Crore, the relevant consumption function would be :
If increase in National Income is equal to increase in Savings, the value of Marginal Propensity to Consume would be ______.
Complete the following table:
| INCOME (Y) |
SAVING (S) |
APC |
| 0 | (-) 12 | |
| 20 | 6 |
How is APS obtained from the APC?
APC can be greater than one, but MPC is always less than one. Give a reason to justify this phenomenon.
