Income And Employment 12 'C' and D'

Break-even point Occurs when

• Y = S

• S = 0

• Y = C

• both (b) and (c)

If MPC is 0.6, what will be  $\Delta$ S when income increased by Rs 50?

• Rs 30

• Rs 20

• Rs 25

• Rs 35

when C=300 + 0.8Y and Y=500, saving at zero income level will be:

• 300

• -300

• 1,100

• 800

In the consumption function, C= a + by, then a refer to:

• Value of a when Y=0

• Value of a when Y change

• Value of a When Y=C

• Value of a when Y is Constant

Average propensity to consume is equal to:

• $\Delta Y\div\Delta C$

• $\Delta C\div\Delta Y$

• $Y\div C$

• $C\div Y$

MPC being equal to 0.5, what will be  $\Delta C$  if income increases by Rs 100?

• Rs 60

• Rs 50

• Rs 40

• Rs 70

Find consumption expenditure from the following:

National Income= Rs 5000/-

Autonomous consumption= Rs 1000/-

Marginal propensity to consume=0.80

Hints-C=c‒+b.Y

• Rs 2,000

• Rs 3,000

• Rs 4,000

• RS 5,000

The value of APS can never be greater than 1.

• True

• False

Sum of APC and MPC is always equal to 1.

• True

• False

Saving and investment are always equal.

• True

• False