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Question
From the given table, identify that level of income where Average Propensity to Save (APS) becomes Zero.
| Income (₹ crore) | 0 | 50 | 100 | 200 | 300 | 400 |
| Consumption (₹ crore) | 50 | 75 | 100 | 150 | 200 | 250 |
Options
50
100
200
0
MCQ
Solution
100
Explanation:
APS = `S/Y`
APS can be 0 at the breakeven income level. At break even, C equals Y. At ₹100 crores, Y = C, and hence S = 0.
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