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प्रश्न
On the basis of following schedule, answer the given questions:
| Income (in ₹ crores) |
Savings (in ₹ crores) |
| 0 | -20 |
| 50 | -10 |
| 100 | 0 |
| 150 | 30 |
| 200 | 60 |
- Calculate Marginal Propensity to Save (MPS) at ₹ 150 crores level of income.
- What is the value of Autonomous Consumption?
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उत्तर
| (Y) (in crores) |
(S) (in crores) |
ΔS (in crores) |
ΔY (in crores) |
| 0 | -20 | - | - |
| 50 | -10 | - 10 - (20) = 10 | 50 - 0 = 50 |
| 100 | 0 | 0 - (-10) = 10 | 100 - 50 = 50 |
| 150 | 30 | 30 - 0 = 30 | 150 - 100 - 50 |
| 200 | 60 | 60 - 30 = 30 | 200 - 150 = 50 |
(a) MPS at 150 = `"ΔS"/"ΔY"`
= `30/50`
= 0.6
(b) Autonomous consumption (consumption at 0 level of income) Y- S =
= 0 - (-20)
= 20 crores.
संबंधित प्रश्न
What is marginal propensity to consume?
State the meaning of the following:
Autonomous Consumption
In equation C = a + by, the value of b lies between ______.
Final goods refer to those goods which are used either for ______ or for ______.
Consumption depends on ______
Which of the following statements is true?
Read the following statements carefully:
Statement 1: The consumption curve is an upward sloping straight line curve due to the direct relationship between income and consumption and the assumption of constant Marginal Propensity to Consume.
Statement 2: Aggregate Demand curve and Consumption curve are parallel to each other.
In the light of the given statements, choose the correct alternative from the following:
"In an economy, the autonomous consumption is ₹ 100 and Marginal Propensity to Consume (MPC) is 0.6. If the equilibrium level of Income is 2,000, then the autonomous investment is ₹ 300." Justify the statement with valid calculation.
At the break-even point level of incomes for the economy is ₹ 10,000 crores and if the people tends to save 20 per cent of their additional income, then calcualte the value of autonomous consumption.
Read the following statements carefully:
Statement 1: The induced consumption shows, the direct relation between consumption and income.
Statement 2: With a certain increase in income, induced consumption also increases.
In the light of the given statements, choose the correct alternative from the following:
Read the following statements carefully:
Statement 1: Consumption function assumes that, consumption changes at a constant rate as income changes.
Statement 2: Autonomous consumption is the ratio of total consumption (C) to total income (Y).
In light of the given statements, choose the correct alternative from the following:
In an economy, the value of Marginal Propensity to Save (MPS) is 0.25, what will be the value of increase in income, if investments increased by ₹ 200 crores?
