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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.
उत्तर
Given that
Marginal propensity to consume (MPC) = 0.6
Initial income= 100
Autonomous investment= 80
`C = bar(C) + c(Y)`100
`C = 0 + 0.6(Y)`
| Income | Consumption | Saving | Investment |
| 100 | 60 | 40 | 80 |
| 200 | 120 | 80 | 80 |
| 300 | 180 | 120 | 80 |
| 400 | 240 | 160 | 80 |
| 500 | 300 | 200 | 80 |
Aggregate demand (AD) = Aggregate supply (AS)
AD= C+ I and AS = C+ S
Therefore, the equilibrium level of income is Rs 200 crores
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संबंधित प्रश्न
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
Suppose marginal propensity to consume is 0.8. How much increase in investment is required to increase national income by Rs. 2000 crore? Calculate.
Define marginal propensity to save.
An economy is in equilibrium. Calculate Autonomous Consumption from the following :
National Income = 1,250
Marginal Propensity to Save = 0.2
Investment Expenditure = 150
Complete the following table:
|
Consumption expenditure (Rs) |
Savings (Rs) |
Income (Rs) |
Marginal propensity to Consume |
|
100 |
50 |
150 |
|
|
175 |
75 |
……. |
…… |
|
250 |
100 |
……. |
…… |
|
325 |
125 |
……. |
…… |
Define or explain the following concept.
Autonomous Consumption.
Fill in the blank with appropriate alternatives given in the bracket:
The part of income not spent is________.
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 _________.
Match the following Group ‘A’ with Group ‘B’:
| Group ‘A’ | Group ‘B’ | ||
| (a) | Giffen’s goods | (1) | Uses of commodities |
| (b) | Essential commodities | (2) | Keynes |
| (c) | Consumption | (3) | Primary function of bank |
| (d) | Consumption function | (4) | Inferior goods |
| (e) | Accept deposits | (5) | Money lender |
|
|
(6) | Inelastic demand | |
|
|
|
(7) | Luxurious commodities |
|
|
|
(8) | Dr. Marshall |
Answer the following question.
What is meant by autonomous consumption? Explain with the help of a diagram.
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)
In a hypothetical economy, Mr. Neeraj has deposited ₹100 in the bank. If it is assumed that there is no other currency circulation in the economy, then the total money supply in the economy will be ____________.
A firm is able to sell any quantity of a good at a given price. The firm's Marginal Revenue will be ______
Which of the following points establish the relationship between MPS and MPC?
The rate of increase in ______ due to a unit increment in income is called marginal propensity to consume.
Average Propensity to Consume is equal to:
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)?
APC can be greater than one, but MPC is always less than one. Give a reason to justify this phenomenon.
