# Determination of Income and Employment-Propensity to Consume and Propensity to Save (CBSE (Central Board of Secondary Education- Board Exam) Class-12 Economics): Questions 7 - 11 of 22

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## Question number: 7

» 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: 8

» 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

… (39 more words) …

## Question number: 9

» 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.

## Question number: 10

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

Appeared in Year: 2009

Essay Question▾

### Describe in Detail

 Income Saving Marginal Propensity to Consume Average Propensity to Save 0 -12 - - 20 -6 - - 40 0 - - 60 6 - -

### Explanation

 Income (Y) Saving (S) Consumption (C) Marginal Propensity to Consume Average Propensity to Save 0 -12 12 - - 20 -6 26 0.7 -0.3 =

… (37 more words) …

## Question number: 11

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

Essay Question▾

### Describe in Detail

Complete the following table:

 Income Saving Marginal propensity to consume Average propensity to consume 0 -20 - - 50 -10 - - 100 0 - - 150 30 - - 200 60 - -

### Explanation

 Income Saving Consumption Marginal propensity to consume Average propensity to consume 0 -20 20 - - 50 -10 60 40/50 = 0.8 60/50 = 1.2

… (13 more words) …

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