Advertisements
Advertisements
प्रश्न
Explain the subjective factors which determine consumption function.
Give reason or Explain the following statement :
There are many subjective factors determine consumption function.
Advertisements
उत्तर १
The following are some of the subjective factors that determine consumption function:
- Motive of precaution: People save money for the future in order to meet unexpected expenditure.
- Motive of foresightedness: People cut down their spending in order to meet future requirements for money. For examples, requirements for higher education, marriage, buying a house etc.
- Motive of independence: As per this motive, man saves more in order to depict more power and independence.
- Motive of pride: Another motive that prevents people from spending is wanting to maintain the same economic stability in the future. Providing some wealth to their future generations or making donations gives them a feeling of pride.
- Motive of enterprise: People prevent current consumption and save for the purpose of investing. Under this motive, people save to invest in a profitable enterprise.
- Motive of calculation: Under this motive, people save to invest in shares and debentures in order to increase their income.
उत्तर २
There are many subjective factors that determine consumption function.
There are many subjective factors that determine consumption function. It is because subjective factors like motive or precaution, motive of foresight, motive of calculation motive of improvement, motive of independence, motive of enterprise, motive of pride etc. influence consumption function.
APPEARS IN
संबंधित प्रश्न
What is aggregate supply?
Explain the concept of 'excess demand' in macroeconomics. Also explain the role of 'open market operation' in correcting it.
What is meant by aggregate demand?
State components of aggregate demand.
Explain how government spending can be helpful in removing deficient demand.
Derive the two alternative conditions of expressing national income equilibrium. Show these equilibrium conditions on a single diagram.
State three measures to reduce inflationary gap.
Aggregate demand can be increased by ______
Explain the role of Repo Rate in reducing the Inflationary gap.
Explain the concept of deflationary gap.
Name any two components of 'aggregate demand'.
Explain the role of Cash Reserve Ratio in removing an inflationary gap
explain the role of Bank Rate in correcting deficient demand?
Explain the role of 'Margin Requirements' in removing this deficient demand gap.
Explain the role of 'Open Market Operations' in reducing Deflationary Gap
What is a ‘consumption function’?
Explain the determinants of aggregate supply.
Discuss the situation when aggregate demand is more than aggregate supply at full employment income level.
Explain with reason, whether you agree or disagree with the following statement:
Aggregate supply is influenced only by availability of natural resources.
Fill in the blank with appropriate alternatives given below
The General Theory of Employment, Interest and Money was written by __________.
Match the following Group:
| Group A | Group B | ||
| 1) | Aggregate Supply | a) | Expected receipts |
| 2) | Autonomous Investment | b) | Lord J. M. Keynes |
| 3) | Consumption | c) | Government Investment |
| 4) | A.P.C. | d) | ΔC/ΔY |
| 5) | Investment | e) | C/Y |
| f) | Addition to stock of capital | ||
| g) | Destruction of utility | ||
Define or Explain the following concept:
Aggregate Demand
Give reason or explain.
Aggregate demand is a positive function of the level of employment and output.
Distinguish between:
Aggregate Demand and Aggregate Supply
Write Short note on:
Average Propensity to Consume
State with reason whether you agree or disagree with the following statement.
Aggregate demand depends only on the consumption expenditure.
State with reason whether you agree or disagree with the following statement.
Aggregate supply is influenced by the state of technology only.
Answer in detail.
What is Aggregate Supply? Explain the determinants of Aggregate Supply.
Write explanatory answer.
What is 'aggregate supply'? Explain the determinants of aggregate supply.
Explain the concept of deficient demand with the help of aggregate demand and aggregate supply curves. Discuss one physical and one monetary measure to correct it.
Answer the following question.
State and discuss the components of Aggregate Demand in a two-sector economy.
Discuss the working of the adjustment mechanism in the following situations:
Aggregate demand is greater than the aggregate supply.
Discuss the adjustment mechanism in the following situation :
Aggregate demand is lesser than Aggregate Supply.
The main component of aggregate demand is ______
On which concept does classical viewpoint depend?
Keynes theory is associated with ______
What is meant by Equilibrium income?
Which of the following are the definitions of money supply in India?
A decrease in Cash Reserve Ratio will lead to ______
It is seen that the private consumption expenditure, private investment expenditure, and ex-ante savings have reduced the ______ in the economy.
What is the circumstance when aggregate output is determined solely by the level of aggregate demand called?
The slope of the supply curve is measured by ______.
When aggregate demand is greater than aggregate supply, inventories:
“In an economy Planned spending is more than Planned output”.
Explain its impact on the level of output, income and employment.
If planned savings exceeds planned investments in an economy, explain its likely impact on income, output and employment.
With reference to Simple Keynesian model, give the meaning of ex-ante demand.
If aggregate demand exceeds aggregate supply in a situation of full employment, what will be its impact on the economy?
