The average propensity to consume is measured by (a) C/Y (b) C=Y © Y/C (d) C+Y

Question

The average propensity to consume is measured by (a) C/Y (b) C=Y © Y/C (d) C+Y

The average propensity to consume is measured by (a) C/Y
(b) C=Y
© Y/C
(d) C+Y

asked Jul 30, 2021 by anonymous

1 Answer

Related questions

Which of the following are not characteristics of Keynesian consumption function? (a) The main influence on consumption in the short run is current disposable income (b) The marginal propensity to consume is less than one © The average propensity to consume decreases as income increases (d) The average propensity to consume increases as income increases

Description : Which of the following are not characteristics of Keynesian consumption function? (a) The main influence on consumption in the short run is current disposable income (b) The marginal ... consume decreases as income increases (d) The average propensity to consume increases as income increases

Last Answer : d) The average propensity to consume increases as income increases

The cost of borrowing is equal to marginal propensity to consume. 21. Investment is (a) An injection that increases aggregate demand (b) An withdrawal that increases aggregate demand © An injection that decreases aggregate demand (d) An withdrawal that decreases aggregate demand

Description : The cost of borrowing is equal to marginal propensity to consume. 21. Investment is (a) An injection that increases aggregate demand (b) An withdrawal that increases aggregate demand © An injection that decreases aggregate demand (d) An withdrawal that decreases aggregate demand

Last Answer : a) An injection that increases aggregate demand

A profit maximizing firm will invest up to the level of investment where (a) The cost of borrowing equals marginal efficiency of capital (b) The cost of borrowing is greater than marginal efficiency of capital © The cost of borrowing is less than marginal efficiency of capital (d) The cost of borrowing is equal to marginal propensity to consume.

Description : A profit maximizing firm will invest up to the level of investment where (a) The cost of borrowing equals marginal efficiency of capital (b) The cost of borrowing is greater than marginal ... marginal efficiency of capital (d) The cost of borrowing is equal to marginal propensity to consume.

Last Answer : (a) The cost of borrowing equals marginal efficiency of capital

.An increases in investment is most likely to be caused by (a) Lower interest rates (b) Expectations of lower national incomes © A decrease in the marginal propensity to consume (d) An increase in withdrawals.

Description : .An increases in investment is most likely to be caused by (a) Lower interest rates (b) Expectations of lower national incomes © A decrease in the marginal propensity to consume (d) An increase in withdrawals.

Last Answer : (a) Lower interest rates

An increase in investment is caused by (a) Lower interest rates (b) Expectations of lower national income © A decrease in the marginal propensity to consume (d) An increase in withdrawals

Description : An increase in investment is caused by (a) Lower interest rates (b) Expectations of lower national income © A decrease in the marginal propensity to consume (d) An increase in withdrawals

Last Answer : (a) Lower interest rates

The marginal propensity to consume is equal to (a) Total spending/Total consumption (b) Total consumption/ Total income. © Change in consumption/ Change in income (d) Change in consumption/ Change in savings.

Description : The marginal propensity to consume is equal to (a) Total spending/Total consumption (b) Total consumption/ Total income. © Change in consumption/ Change in income (d) Change in consumption/ Change in savings.

Last Answer : © Change in consumption/ Change in income

An increase in marginal propensity to consume will (a) Lead to the consumption function becoming steeper. (b) Shift the consumption function upwards. © Shift the consumption function downwards. (d) Shift the savings function upwards.

Description : An increase in marginal propensity to consume will (a) Lead to the consumption function becoming steeper. (b) Shift the consumption function upwards. © Shift the consumption function downwards. (d) Shift the savings function upwards.

Last Answer : d) Lead to the consumption function becoming steeper.

Marginal Propensity to Consume is (a) Increase in consumption due to one unit increase in income. (b) Total consumption divided by total income. © Both (a) and (b). (d) Neither (a) nor (b).

Description : Marginal Propensity to Consume is (a) Increase in consumption due to one unit increase in income. (b) Total consumption divided by total income. © Both (a) and (b). (d) Neither (a) nor (b).

Last Answer : (a) Increase in consumption due to one unit increase in income.

Over short period, when income rises, average propensity to consume usually - (1) rises (2) falls (3) remains constant (4) fluctuates

Description : Over short period, when income rises, average propensity to consume usually - (1) rises (2) falls (3) remains constant (4) fluctuates

Last Answer : (2) falls Explanation: Keynes postulated that aggregate consumption is a function of aggregate current disposable income. The Keynesian consumption function is written as: C = a + eY a > 0, 0 < c < 1; ... the disposal in-come. So as income increases, average propensity to consume (APC = C/Y) falls.

Average propensity to consume is defined as - (1) Aggregate consumption +Total population (2) Aggregate income ÷ Aggregate consumption (3) Change in consumption ÷ Change in income (4) Aggregate consumption +Aggregate income

Description : Average propensity to consume is defined as - (1) Aggregate consumption +Total population (2) Aggregate income ÷ Aggregate consumption (3) Change in consumption ÷ Change in income (4) Aggregate consumption +Aggregate income

Last Answer : (4) Aggregate consumption +Aggregate income Explanation: In economics, the average propensity to consume (APC) is defined as the ratio of aggregate or total consumption to aggregate income in a given ... propensity to consume, for any income level, may be found by dividing consumption by income.

Over short period, when income rises, average propensity to consume usually (1) rises (2) falls (3) remains constant (4) fluctuates

Description : Over short period, when income rises, average propensity to consume usually (1) rises (2) falls (3) remains constant (4) fluctuates

Last Answer : falls

What is "mpc"• or the 'marginal propensity to consume'? a) the proportion of total additional planned savings to total additional income b) the proportion of total additional income to total additional planned savings c) the fraction of total additional income that is used for consumption d) none of the above

Description : What is "mpc" or the 'marginal propensity to consume'? a) the proportion of total additional planned savings to total additional income b) the proportion of total additional income to total additional ... c) the fraction of total additional income that is used for consumption d) none of the above

Last Answer : : c) the fraction of total additional income that is used for consumption

The marginal propensity to consume lies between (1) 0 to 1 (2) 0 to ¥ (3) 1 to ¥ (4) ¥ to ¥

Description : The marginal propensity to consume lies between (1) 0 to 1 (2) 0 to ¥ (3) 1 to ¥ (4) ¥ to ¥

Last Answer : 0 to 1

The slope of the consumption curve connotes (a) Average propensity to save ; (b) Marginal Propensity to consume ; (c) Marginal propensity to save ; (d) Level of consumption in the economy.

Description : The slope of the consumption curve connotes (a) Average propensity to save ; (b) Marginal Propensity to consume ; (c) Marginal propensity to save ; (d) Level of consumption in the economy.

Last Answer : (b) Marginal Propensity to consume ;

Consumption demand does not depend upon the level of (a) Income ; (b) Propensity to consume ; (c) Consumer spending ; (d) Marginal efficiency of investment.

Description : Consumption demand does not depend upon the level of (a) Income ; (b) Propensity to consume ; (c) Consumer spending ; (d) Marginal efficiency of investment.

Last Answer : (d) Marginal efficiency of investment.

By definition, the marginal propensity to consume (a) Equals ΔC/ΔYd ; (b) Is the behavioral coefficient c in the equation C = a + cYd; (c) Is the slope of the consumption function ; (d) All the above

Description : By definition, the marginal propensity to consume (a) Equals ΔC/ΔYd ; (b) Is the behavioral coefficient c in the equation C = a + cYd; (c) Is the slope of the consumption function ; (d) All the above

Last Answer : (d) All the above

A period of expansion and contraction measured by real GDP is called (a) Business cycle (b) Expansion © Recession (d) Contraction

Description : A period of expansion and contraction measured by real GDP is called (a) Business cycle (b) Expansion © Recession (d) Contraction

Last Answer : (a) Business cycle

Difference between average cost and average revenue is (a) total profit (b) net profit © average profit (d) marginal profit

Description : Difference between average cost and average revenue is (a) total profit (b) net profit © average profit (d) marginal profit

Last Answer : © average profit

Total utility is maximum, when (a) marginal utility is maximum (b) marginal utility is zero © marginal utility increases (d) average utility is maximum

Description : Total utility is maximum, when (a) marginal utility is maximum (b) marginal utility is zero © marginal utility increases (d) average utility is maximum

Last Answer : (b) marginal utility is zero

What is the average calorie intake of rural India for measuring poverty line? (a) 2400 calories per person per day. (b) 2800 calories per person per day. © 2100 calories per person per day. (d) None of these.

Description : What is the average calorie intake of rural India for measuring poverty line? (a) 2400 calories per person per day. (b) 2800 calories per person per day. © 2100 calories per person per day. (d) None of these.

Last Answer : (a) 2400 calories per person per day.

According to Keynes, business cycles are due to variation in the rate of investment caused by fluctuations, in the - (1) Marginal efficiency of capital (2) Marginal propensity to save (3) Marginal propensity to consumption (4) Marginal efficiency to investment

Description : According to Keynes, business cycles are due to variation in the rate of investment caused by fluctuations, in the - (1) Marginal efficiency of capital (2) Marginal propensity to save (3) Marginal propensity to consumption (4) Marginal efficiency to investment

Last Answer : (1) Marginal efficiency of capital Explanation: According to Keynes' General Theory of Employment, Interest, and Money,' business cycles are caused by variations in the rate of investment ... efficiency of capital. Marginal efficiency of capital means the expected profits from new investments.

What is "mps"• or the 'marginal propensity to save'? a) the proportion of total additional planned savings to total additional income b) the proportion of total additional income to total additional planned savings c) the fraction of total additional income that is used for consumption d) none of the above

Description : What is "mps" or the 'marginal propensity to save'? a) the proportion of total additional planned savings to total additional income b) the proportion of total additional income to total additional ... c) the fraction of total additional income that is used for consumption d) none of the above

Last Answer : a) the proportion of total additional planned savings to total additional incom

According to Keynes, business cycles are due to variation in the rate of investment caused by fluctuations , in the (1) Marginal efficiency of capital (2) Marginal propensity to save (3) Marginal propensity to consumption (4) Marginal efficiency to investment

Description : According to Keynes, business cycles are due to variation in the rate of investment caused by fluctuations , in the (1) Marginal efficiency of capital (2) Marginal propensity to save (3) Marginal propensity to consumption (4) Marginal efficiency to investment

Last Answer : Marginal efficiency of capital

Average Propensity to Save?

Description : Average Propensity to Save?

Last Answer : In Economics there is a term, Average Propensity to Save (APS). This is sometimes referred to as the savings ratio. It is roughly defined as the portion of income retained after taxes and ... to increase your Average Propensity to Save â€ it could mean the difference between panic and peace.

Leontief’s model is open due to the fact that final demand is given from----- the system (a) within (b) outside © both (a) and (b) (d) none of the above.

Description : Leontief’s model is open due to the fact that final demand is given from----- the system (a) within (b) outside © both (a) and (b) (d) none of the above.

Last Answer : (b) outside

Factors of production in Input Output model is---- (a) one (b) two © three (d) four

Description : Factors of production in Input Output model is---- (a) one (b) two © three (d) four

Last Answer : (a) one

Leontief”s model explains a----- equilibrium. (a) static (b) dynamic © both static and dynamic (d) none of the above

Description : Leontief”s model explains a----- equilibrium. (a) static (b) dynamic © both static and dynamic (d) none of the above

Last Answer : (a) static

The isoquants in Input Output model is (a) convex to the origin (b) concave to the origin © l shaped. (d) straight line.

Description : The isoquants in Input Output model is (a) convex to the origin (b) concave to the origin © l shaped. (d) straight line.

Last Answer : © l shaped.

In Input Output model only----product is produced (a) One (b) Two © Three (d) Four

Description : In Input Output model only----product is produced (a) One (b) Two © Three (d) Four

Last Answer : (a) One (d) Four

Leontief’s input output model is based on the concept of----- (a) Consumption function (b) Partial Equilibrium © General Equilibrium. (d) All of the above.

Description : Leontief’s input output model is based on the concept of----- (a) Consumption function (b) Partial Equilibrium © General Equilibrium. (d) All of the above.

Last Answer : © General Equilibrium.

Hawkins Simon condition explains the----- condition in Input output model (a) Instability (b) Stability © Uniqueness (d) None of the above

Description : Hawkins Simon condition explains the----- condition in Input output model (a) Instability (b) Stability © Uniqueness (d) None of the above

Last Answer : (b) Stability

In Leontief’s model own input coefficient’s are less than---- (a) Four (b) Three © Two (d) One

Description : In Leontief’s model own input coefficient’s are less than---- (a) Four (b) Three © Two (d) One

Last Answer : (d) One

Isoquants in Leontief’s input- output model are (a) Variable coefficient (b) Fixed coefficient © Sometimes fixed sometimes variable (d) None of the abov

Description : Isoquants in Leontief’s input- output model are (a) Variable coefficient (b) Fixed coefficient © Sometimes fixed sometimes variable (d) None of the abov

Last Answer : (b) Fixed coefficient

If the production possibility curve is linear, then production is said to be subject of (a) constant opportunity cost (b) decreasing opportunity cost © Increasing opportunity cost (d) first increasing then decreasing opportunity cost.

Description : If the production possibility curve is linear, then production is said to be subject of (a) constant opportunity cost (b) decreasing opportunity cost © Increasing opportunity cost (d) first increasing then decreasing opportunity cost.

Last Answer : (a) constant opportunity cost

Normally the isoquant slopes (a) downwards from left to right (b) upward from right to left © upwards from left to right (d) backwards from left to right

Description : Normally the isoquant slopes (a) downwards from left to right (b) upward from right to left © upwards from left to right (d) backwards from left to right

Last Answer : (a) downwards from left to right

Last Answer : (b) AVC

Last Answer : (d) AR X Q

Last Answer : (b) 1

Description : .All of the following curves are U-shaped, except the (a) AFC curve (b) MC curve © AC curve (d) AVC curve

Last Answer : (a) AFC curve

In the long run, which of the following factors of production is fixed? (a) capital (b) building © labour (d) none of the above

Description : In the long run, which of the following factors of production is fixed? (a) capital (b) building © labour (d) none of the above

Last Answer : (d) none of the above

Diminishing returns occurs when a firm (a) uses too much of all inputs (b) uses more and more of one input while holding another inputs constant © does not utilize its inputs efficiently (d) cut down on the quantity of all inputs it uses

Description : Diminishing returns occurs when a firm (a) uses too much of all inputs (b) uses more and more of one input while holding another inputs constant © does not utilize its inputs efficiently (d) cut down on the quantity of all inputs it uses

Last Answer : b) uses more and more of one input while holding another inputs constant

“Higher the indifference curve, higher will be the level of satisfaction” (a) always true (b) always false © sometimes true and sometimes false (d) true only if price effect is positive.

Description : “Higher the indifference curve, higher will be the level of satisfaction” (a) always true (b) always false © sometimes true and sometimes false (d) true only if price effect is positive.

Last Answer : (b) always false

A price consumption curve, traces the utility maximizing combination of two goods when (a) the price of one good changes (b) the consumer’s preference change © the consumer’s income changes (d) the demand curve for one of the goods shifts rightward

Description : A price consumption curve, traces the utility maximizing combination of two goods when (a) the price of one good changes (b) the consumer’s preference change © the consumer’s income changes (d) the demand curve for one of the goods shifts rightward

Last Answer : (a) the price of one good changes

Description : Marginal rate of substitution is the ___of the indifference curve (a) mean (b) slope © peak (d) inverse

Last Answer : (b) slope

Description : Marginal utility means (a) change in total utility due to one unit change in consumption (b) change in total utility due to no change in consumption © change in utility due to change in price (d) change in utility due to change in income

Last Answer : (a) change in total utility due to one unit change in consumption

“ All Giffen goods are inferior, but all inferior goods are not Giffen”. The statement is (a) sometimes true (b) true © false (d) none of the above

Description : “ All Giffen goods are inferior, but all inferior goods are not Giffen”. The statement is (a) sometimes true (b) true © false (d) none of the above

Last Answer : (b) true

An increase in product price will cause (a) quantity demanded to decrease (b) quantity supplied to decrease © quantity demanded to increase (d) the demand curve to shift to the left

Description : An increase in product price will cause (a) quantity demanded to decrease (b) quantity supplied to decrease © quantity demanded to increase (d) the demand curve to shift to the left

Last Answer : (a) quantity demanded to decrease

If consumer’s income increases, the demand for normal product X (a) will remain unchanged (b)will necessarily increase © will necessarily decrease (d) may increase or decrease

Description : If consumer’s income increases, the demand for normal product X (a) will remain unchanged (b)will necessarily increase © will necessarily decrease (d) may increase or decrease

Last Answer : (b)will necessarily increase

The law of diminishing marginal utility is most useful for explaining the (a) Law of supply (b) Law of demand © Shape of production possibility curve (d) curvature of total cost curve

Description : The law of diminishing marginal utility is most useful for explaining the (a) Law of supply (b) Law of demand © Shape of production possibility curve (d) curvature of total cost curve

Last Answer : (b) Law of demand

anonymous · Answer 1 · 2021-07-30T00:09:50+0000

Answer :

a) C/Y

answered Jul 30, 2021 by anonymous

The average propensity to consume is measured by (a) C/Y (b) C=Y © Y/C (d) C+Y

Please log in or register to add a comment.

Please log in or register to answer this question.

1 Answer

Answer :

Please log in or register to add a comment.

Related questions