Question : If disposable income is Rs.2000 and consumption expenditure is Rs.1650, find out average propensity to save.
 

Option 1: 1.75

Option 2: 0.175

Option 3: 1.21
 

Option 4: 2

Question : __________________________ refers to the consumption expenditure to the corresponding level of income.
 

Option 1: Average propensity to consume
 

Option 2: Marginal propensity to consume
 

Option 3: Average propensity to save
 

Option 4: None of the above.
 

Question : Given that national income is Rs.100 crore and consumption expenditure is Rs.72 crore, When income rises to Rs. 200 crore and consumption expenditure to Rs.108 crore, what will be the average propensity to consume and a marginal propensity to save?

Option 1: 0.28

Option 2: 0.72

Option 3: 0.64

Option 4: 0.65

Question : Higher the disposable income, higher is ___________ expenditure.
 

Option 1: Consumption expenditure.
 

Option 2: Government expenditure.
 

Option 3: Investment expenditure.
 

Option 4: Net exports
 

Question : _____________________ is defined as ratio of change in consumption to change in total income

Option 1: Marginal propensity to consume

Option 2: Marginal propensity to save

Option 3: Average propensity to consume

Option 4: Average propensity to save.

Question : Given that national income is Rs.100 crore and consumption expenditure is Rs.72 crore, When income rises to Rs. 200 crore and consumption expenditure to Rs. 108 crore, what will be the average propensity to save at initial level?.

Option 1: 0.28

Option 2: 0.72

Option 3: 1

Option 4: 0.3