Question : __________________________ refers to the consumption expenditure to the corresponding level of income.
Option 1: Average propensity to consume
Option 2: Marginal propensity to consume
Option 3: Average propensity to save
Option 4: None of the above.
Correct Answer: Average propensity to consume
Solution : Average propensity to consume refers to the consumption expenditure to the corresponding level of income. Hence, Option A is correct.
Question : _____________________ is defined as ratio of change in consumption to change in total income
Question : Given that national income is Rs.100 crore and consumption expenditure is Rs.72 crore, When income rises to Rs. 200 crore and consumption expenditure to Rs.108 crore, what will be the average propensity to consume and a marginal propensity to save?
Question : Given that national income is Rs.100 crore and consumption expenditure is Rs.72 crore, When income rises to Rs. 200 crore and consumption expenditure to Rs. 108 crore, what will be the average propensity to consume at intial level.
Question : An economy, the equilibrium level of income is Rs.12500. The ratio of marginal propensity to consume and marginal propensity to save is 4:1. Calculate the additional investment needed to reach a new equilibrium level of income of Rs.20,000 crore.
Question : If disposable income is Rs.2000 and consumption expenditure is Rs.1650, find out average propensity to save.
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