Advertisements
Chapters
1: Micro and Macro Economics - An Introduction
2: Demand and Law of Demand
3: Elasticity of Demand
4: Theory of Consumer's Behaviour : Cardinal Utility Analysis
5: Theory of Consumer's Behaviour : Indifference Curve Analysis
6: Supply and Law of Supply
7: Revenue Analysis
8: Cost Theory Analysis
9: Forms of Market
10: Concept of Production and Law of Returns
11: Equilibrium of Firm and Industry Under Perfect Competition
12: Producer's Equilibrium Under Perfect Competition
13: Price Output Under Perfect Competition
14: Price Output Determination Under Monopoly
15: Price Output Determination Under Monopolistic Competition and Oligopoly
Unit 2 : Theory of Income and Employment
16: Basic Concepts of Macro Economics
17: Aggregate Demand and Supply - Determinants of Equilibrium
▶ 18: Consumption Function {Propensity to Consume)
19: Concept of Investments-Types and Determinants
20: Multiplier - I : Static and Dynamic
21: Full Employment and Voluntary Unemployment
22: Problems of Deficient Demand and Excesss Demand
23: Measures to Correct Deficient and Excess Demand
Unit 3 : Money and Banking
24: Money - An Introduction
25: Bank and Commercial Bank
26: Central Bank
Unit 4 : International Trade
27: Balance of Payments
28: Foreign Exchange Rate
Unit 5 : Public Finance
29: Fiscal Policy
30: Budget
Unit 6 ; National Income
31: National Income and Circular Flow of Income
32: Concepts of National Income
33: Measurement of National Income
34: National Income and Economic Welfare
![R. K. Lekhi and P. K. Dhar solutions for Economics [English] Class 12 ISC chapter 18 - Consumption Function {Propensity to Consume) - Shaalaa.com](/images/economics-english-class-12-isc_6:0ec86a6424ae41d2b0d71f72fec46101.jpg "R. K. Lekhi and P. K. Dhar solutions for Economics [English] Class 12 ISC chapter 18 - Consumption Function {Propensity to Consume)")
Advertisements
Solutions for Chapter 18: Consumption Function {Propensity to Consume)
Below listed, you can find solutions for Chapter 18 of CISCE R. K. Lekhi and P. K. Dhar for Economics [English] Class 12 ISC.
R. K. Lekhi and P. K. Dhar solutions for Economics [English] Class 12 ISC 18 Consumption Function {Propensity to Consume) TEST QUESTIONS [Pages 18.15 - 18.17]
SHORT ANSWER QUESTIONS
What is a ‘consumption function’?
Give three main characteristics of consumption function.
What is Average propensity to consume?
Explain MPC.
Write down the main features of Marginal propensity to consume.
What are the causes of the fall in MPC with the increase in Income?
What do you mean by a propensity to save?
Give the types of propensity to save.
What are the determinants of consumption function?
Explain the Keynesian psychological law of consumption.
What are the assumptions on which psychological law of consumption is based?
Explain the implications or importance of psychological Law of Consumption.
Give any four measures to raise propensity to consume.
Explain that sum total of c and s is equal to 1.
Show that APC + APS = 1.
LONG ANSWER QUESTIONS
Define consumption.
What are the determinants of consumption function?
Explain the features of consumption.
State the significance of consumption.
What is a ‘consumption function’?
State the various types of consumption.
What is a ‘consumption function’?
What are the determinants of consumption function?
Explain the Keynesian psychological law of consumption.
What part does the consumption function of Keynes play in the theory of employment?
Define the term propensity of consume.
Discuss the factors which govern propensity to consume.
Show Keynes’ psychological law of consumption along with assumptions, schedule and diagrams.
Explain the implications or importance of psychological Law of Consumption.
Explain the Keynesian psychological law of consumption.
Explain the implications or importance of psychological Law of Consumption.
What is a ‘consumption function’?
Discuss the factors which govern propensity to consume.
Explain the relation between APC and MPC.
Why does MPC generally fall?
What is meant by a propensity to consume?
Give any four measures to raise propensity to consume.
‘Logical starting point of Keynes is propensity to consume’. In the light of statement discuss Keynes’ psychological law of consumption function.
R. K. Lekhi and P. K. Dhar solutions for Economics [English] Class 12 ISC 18 Consumption Function {Propensity to Consume) EXAMINATION CORNER [Page 18.18]
(Questions From Previous ISC Papers)
Explain that sum total of c and s is equal to 1.
State two fiscal measures to correct deficient demand in an economy.
Explain with the help of appropriate diagram, the determination of equilibrium level of income and output, using the aggregate demand and aggregate supply approach. Is this equilibrium level of income full employment level?
Explain the determination of national income through the saving-investment approach. Illustrate your answer diagrammatically. Can this equilibrium be at less than full employment level of income?
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.
Find the value of additional investment made by the government when MPC = 0.5 and the increase in income (ΔY) = ₹ 1000.
Distinguish between average propensity to consume and average propensity to save. How are the two interrelated?
Define marginal propensity to consume (MPC).
How is marginal propensity to consume different from marginal propensity to save?
Complete the following table:
| Income (Y) (₹) | Consumption (C) | APS | MPS |
| 0 | 40 | ||
| 50 | 70 | ||
| 100 | 100 | ||
| 150 | 120 |
What is meant by a propensity to consume?
Solutions for 18: Consumption Function {Propensity to Consume)
R. K. Lekhi and P. K. Dhar solutions for Economics [English] Class 12 ISC chapter 18 - Consumption Function {Propensity to Consume)
Shaalaa.com has the CISCE Mathematics Economics [English] Class 12 ISC CISCE solutions in a manner that help students grasp basic concepts better and faster. The detailed, step-by-step solutions will help you understand the concepts better and clarify any confusion. R. K. Lekhi and P. K. Dhar solutions for Mathematics Economics [English] Class 12 ISC CISCE 18 (Consumption Function {Propensity to Consume)) include all questions with answers and detailed explanations. This will clear students' doubts about questions and improve their application skills while preparing for board exams.
Further, we at Shaalaa.com provide such solutions so students can prepare for written exams. R. K. Lekhi and P. K. Dhar textbook solutions can be a core help for self-study and provide excellent self-help guidance for students.
Concepts covered in Economics [English] Class 12 ISC chapter 18 Consumption Function {Propensity to Consume) are Propensity to Consume or Consumption Function, Propensity to Save, Determinants of Propensity to Consume, Psychological Law of Propensity to Consume, Measures to Raise Propensity to Consume, Kinds or Technical Attributes of Propensity to Consume > Average Propensity to Consume, Kinds or Technical Attributes of Propensity to Consume > Marginal Propensity to Consume.
Using R. K. Lekhi and P. K. Dhar Economics [English] Class 12 ISC solutions Consumption Function {Propensity to Consume) exercise by students is an easy way to prepare for the exams, as they involve solutions arranged chapter-wise and also page-wise. The questions involved in R. K. Lekhi and P. K. Dhar Solutions are essential questions that can be asked in the final exam. Maximum CISCE Economics [English] Class 12 ISC students prefer R. K. Lekhi and P. K. Dhar Textbook Solutions to score more in exams.
Get the free view of Chapter 18, Consumption Function {Propensity to Consume) Economics [English] Class 12 ISC additional questions for Mathematics Economics [English] Class 12 ISC CISCE, and you can use Shaalaa.com to keep it handy for your exam preparation.
