Determination of Income and Employment-Propensity to Consume and Propensity to Save (CBSE 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= SY = CYY

806480 = 0.2

Here Y = 100

C = 78

Average propensity to consume= CY = 78100 =0.78

Marginal propensity to consume= ΔC… (13 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

Complete the follow table:

Find Marginal Propensity to consume and Marginal Propensity to save

Find Marginal Propensity to consume and Marginal Propensity to save with explanantion

Income

Saving

Marginal Propensity to Consume

Average Propensity to Save

0

-12

-

-

20

-6

-

-

40

0

-

-

60

6

-

-

Explanation

Calculation Marginal Propensity to consume and Marginal Propensity to save

Calculation of Marginal Propensity to consume and Marginal Propensity to save with explanantion

Income (Y)

Saving (S)

Consumption

(C)

Marginal Propensity to Consume ΔCΔY

Average Propensity to Save SY

0

-12

12

-

-

20

-6… (83 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:

Find Marginal propensity to consume and Average propensity to consume

Marginal propensity to consume and Average propensity to consume find its avlue.

Income

Saving

Marginal propensity to consume

Average propensity to consume

0

-20

-

-

50

-10

-

-

100

0

-

-

150

30

-

-

200

60

-

-

Explanation

Calculation of Marginal propensity to consume and Average propensity to consume

Calculation is given in detail of Marginal propensity to consume and Average propensity to consume

Income

Saving

Consumption

Marginal propensity to consume

Average propensity to consume

0

-20

20

-

-

50

-10

60

40/50 = 0.8

60/50 =… (93 more words) …

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