Keynesian law of consumption and propensity to consume - class-XII
Description: keynesian law of consumption and propensity to consume | |
Number of Questions: 48 | |
Created by: Amit Pandey | |
Tags: economics theory of income and employment applications of derivative determination of income and employment business maths consumption and investment functions concept of consumption function, saving function and investment function income determination determinants of aggregates |
AD curve is a _________________.
Out of the following, which can have a value more than one?
If the saving function is S =- 20 + 0.3Y, then what will be the value of MPC?
A reduction in government spending leads to fall in the income and purchasing power of the people.
Which of the following is not the reason for excess demand?
When marginal propensity to consume is greater than marginal propensity to save, the value of investment multiplier will be greater than 5.
There is an Inverse relationship between the value of marginal propensity to save and investment multiplier.
The maximum value of multiplier is when the value of MPC is _________.
If MPC =1, the value of multiplier is ________.
__________ refers to a situation when AD is equal to AS beyond the full employment level.
If MPC = MPS, then value of multiplier is __________.
If MPC = 0, the value of multiplier is __________.
If MPS = 0.20 and investment is increased by Rs. 400 crores, then total Increase in income will be:
If the marginal propensity of consume is greater than marginal propensity to save, the value of the multiplier will be (Choose the correct alternative):
When is the disposable income equal to the total income?
If income changes from 3000 to 4500 and saving changes from 600 to 900, then calculate MPS?
The Keynesian consumption function gives the relationship between consumption and _______________.
If consumption is Rs 300 Cr. and income is Rs 300 crore, what is APC and what does this imply?
In a country, consumption amount is Rs. 7,200 crore which is 60 per cent of its total disposable income. What is the amount of disposable income?
What exactly does MPC (Marginal Propensity to Consume) communicate?
Consumption depends on which of the following?
In a country, consumption amount is Rs. 900 crore which is 90 percent of its total disposable income. What is the amount of disposable income?
In an economy, the population spends Rs 700 crore on absolute necessities needed to sustain themselves. The current income is Rs 3500 crore and MPC is 0.8. What is the level of consumption?
If MPC = 0.8 and fixed consumption is 200, write the saving equation.
If MPC = 0.7 and fixed consumption is 700, write the saving equation.
In an economy, the population spends Rs 150 crore on absolute necessities needed to sustain themselves. The current income is Rs 450 crore and MPC is 0.6. What is the level of consumption?
In an economy, the population spends Rs 150 crore on absolute necessities needed to sustain themselves. The current income is Rs 450 crore and MPC is 0.6. What is the level of saving?
In an economy, the population spends Rs 500 crore on absolute necessities needed to sustain themselves. The current income is Rs 2500 crore and MPC is 0.5. What is the level of consumption?
If MPC = 0.8 and fixed consumption is 600, write the consumption equation.
Which of the following factors don't affect the propensity to consume in an economy?
The Consumption Function shows the _____________ .
In dealing with Propensity to consume, Keynes considered two attributes:
A schedule of the propensity to consume is ________________.
$APC=\dfrac{C}{Y}$
Calculate APC:
If Y=$3,000$ and C=$2,600$.
Psychological law of consumption states that "as income goes on increasing, the consumption also increases but at a rate less than increase in income.
The Average Propensity to Consume is denoted as _____________.
_______________ explains the relationship between Consumption (C) and Income (Y) in terms of the psychological law of consumption.
___________________ is consumption at zero level of income.
Marginal Propensity to Consume is denoted as ___________________.
Marginal propensity to consume refers to the effect of additional income on consumption.
How is marginal propensity to consumed expressed mathematically?
Higher level of current consumption means ___________.
In an economy, the population spends Rs 700 crore on absolute necessities needed to sustain themselves. The current income is Rs 3500 crore and MPC is 0.8. What is the level of saving?
The formula for the MPC is ___________.
In an economy, the population spends Rs 500 crore on absolute necessities needed to sustain themselves. The current income is Rs 2500 crore and MPC is 0.5. What is the level of saving?