Question : Which of the following statement are true?
- APC is more than 1 before break-even point.
- The point at which consumption curve intersect the 45 degree line, APS is zero.
Option 1: Both are true.
Option 2: Both are false.
Option 3: Statement 1 is true, statement 2 is false.
Option 4: Statement 1 is false, statement 2 is true.
Answer (1)
19th Jan, 2024
Correct Answer:
Both are true.
Solution :
APC is more than 1 before break-even point.
The point at which consumption curve intersect the 45 degree line, APS is zero. It happens because at this point, consumption is equal to income & savings is zero.
Hence, Option A is correct.
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