# Determination of Income and Employment (CBSE Class-12 Economics): Questions 10 - 15 of 35

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## Question number: 10

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

Appeared in Year: 2005

Essay Question▾

### Describe in Detail

 Level of income ( Rs. ) Consumption expenditure Marginal Propensity to consume Marginal Propensity to save 400 240 - - 500 320 - - 600 395 - - 700 465 - -

### Explanation

 Level of income ( Rs. ) (Y) Consumption expenditure (C) Marginal Propensity to consume Marginal Propensity to save 400 240 0.60 0.40 500 320 0.80 0.20 600… (38 more words) …

## Question number: 11

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

Appeared in Year: 2011

Essay Question▾

### Describe in Detail

Explain the relationship between investment multiplier and marginal propensity to consume.

### Explanation

Investment multiplier involve that any change in investment can cause change in income and output.

Investment multiplier K =

Investment Multiplier shares direct positive relationship with marginal propensity to consume.

The relationship is expressed as follows.

K=

Assume that value of MPC is 0.6 then

K= =… (29 more words) …

## Question number: 12

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

Appeared in Year: 2010

True-False▾

### Following Statement is true or false:

When marginal propensity to consume is greater than marginal propensity to save, the value of investment multiplier will be greater than 5.

## Question number: 13

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

Appeared in Year: 2011

Essay Question▾

### Describe in Detail

Given that national income is Rs. 80 crore and consumption expenditure Rs. 64 crore, find out average propensity to save. When income rises to Rs. 100 crore and consumption expenditure to Rs. 78 crore, what will be the average propensity to consume and the marginal propensity to consume?

### Explanation

National Income Y = 80

Consumption Expenditure C = 64

Average propensity to consume= =

= 0.2

Here Y = 100

C = 78

Average propensity to consume= = =0.78

Marginal propensity to consume= = = =0.7

## Question number: 14

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

Appeared in Year: 2009

### Write in Short

Define involuntary unemployment

## Question number: 15

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

Appeared in Year: 2010

True-False▾

### Following Statement is true or false:

The value of marginal propensity to save can never be negative.

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