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 : The marginal propensity to consume (MPC) is defined as the:

Option 1: Change in consumption divided by the change in income
  

Option 2: Change in income divided by the change in consumption
 

Option 3: Change in saving divided by the change in consumption

Option 4: Change in consumption divided by the change in saving

Question : An economy, the equilibrium level of income is Rs.12500. The ratio of marginal propensity to consume and marginal propensity to save is 4:1. Calculate the additional investment needed to reach a new equilibrium level of income of Rs.20,000 crore.

Option 1: 600

Option 2: 800

Option 3: 1200

Option 4: 1000

Question : The marginal propensity to consume (MPC) is defined as the:

Option 1: Proportion of income that is saved
   

Option 2: Proportion of income that is consumed
  

Option 3: Proportion of income that is taxed

Option 4: Proportion of income that is invested

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