Determination of Income and Employment (CBSE Class-12 Economics): Questions 1 - 9 of 35

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Question number: 1

» Determination of Income and Employment » Propensity to Consume and Propensity to Save

Essay Question▾

Describe in Detail

Draw a straight line consumption curve. From it derive a savings curve explaining the process. Show on this diagram:

(a) the level of income at which Average Propensity to Consume is equal to one.

(b) a level of income at which Average Propensity to Save is negative

Explanation

straight line consumption curve

Straight Line Consumption Curve

shows savings and dissavings

ob level of income con sumption

Ob Level of Income Con Sumption

it shows when savings are zero

saving curve from consumption curve

Saving Curve From Consumption Curve

shows level of income when APC = 1 and APC=-1

AC is the consumption curve and OA is the consumption expenditure at zero

level of… (97 more words) …

Question number: 2

» Determination of Income and Employment » Aggregate Demand and Its Components

Essay Question▾

Describe in Detail

Explain the meaning of underemployment equilibrium. State two policy measures that the government can take to make the economy reach full employment equilibrium.

Explanation

An economy is in equilibrium when aggregate demand is equal to aggregate supply. If aggregate demand is only sufficient to support a level of aggregate supply at less than full employment, then the economy is in under full employment equilibrium.

The two policy measures that the government can take are:… (9 more words) …

Question number: 3

» Determination of Income and Employment » Propensity to Consume and Propensity to Save

One Liner Question▾

Write in Brief

What is the relationship between marginal propensity to consume and marginal propensity to save?

Question number: 4

» Determination of Income and Employment » Meaning & Types of Employment & Unemployment

Short Answer Question▾

Write in Short

Can an economy be in a state of under employment equilibrium? Explain with the help of a diagram.

Question number: 5

» Determination of Income and Employment » Investment Multiplier

One Liner Question▾

Write in Brief

If MPC and MPS are equal, what is the value of the multiplier?

Question number: 6

» Determination of Income and Employment » Meaning & Types of Employment & Unemployment

One Liner Question▾

Write in Brief

Give meaning of involuntary unemployment.

Question number: 7

» Determination of Income and Employment » Propensity to Consume and Propensity to Save

One Liner Question▾

Write in Brief

What is the relationship between marginal propensity to save and marginal propensity to consume?

Question number: 8

» Determination of Income and Employment » Meaning & Types of Employment & Unemployment

One Liner Question▾

Write in Brief

Give the meaning of involuntary unemployment.

Question number: 9

» Determination of Income and Employment » Propensity to Consume and Propensity to Save

Short Answer Question▾

Write in Short

Complete the following table:

Data of Income, Saving for calulation of MPC and APC

shows income level and savings at that point to find out MPC and APC

Income

Saving

MPC

APC

0

-20

-

-

50

-10

-

-

100

0

-

-

150

30

-

-

200

60

-

-

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