Question : Determine the value of MPS & MPC from the following consumption function, C= 75+0.8Y.
 

Option 1: 0.4, 0.6
 

Option 2: 0.2, 0.8
 

Option 3: 0.5,0.5
 

Option 4: 0.6,0.4
 

Question : If MPC is four times MPS and consumption at zero level of income is 80 crore. Derive the saving function.

Option 1: S=80+0.8Y

Option 2: S=80-0.8Y

Option 3: S= -80+0.2Y

Option 4: S= -80+0.8Y

Question : If MPC is four times MPS and consumption at zero level of income is 50 crore derive the consumption function.

Option 1: C=50+0.2Y

Option 2: C=50+0.8Y

Option 3: C=50-0.2Y

Option 4: C=50-0.8Y

Question : A consumer's utility function is $\mathrm{U}=\mathrm{X}^{\wedge} 2+\mathrm{Y}^{\wedge} 2$. If the consumer is currently consuming $X=3$ and $Y=4$, what is the marginal rate of substitution (MRS) of $\mathrm{X}$ for $\mathrm{Y}$ ?

Option 1: 3/4

Option 2: 4/3

Option 3: 9/16

Option 4: 16/9

Question : A consumer's utility function is $U=X+2 Y$. If the consumer is currently consuming $\mathrm{X}=4$ and $\mathrm{Y}=6$, what is the marginal rate of substitution (MRS) of $\mathrm{X}$ for $\mathrm{Y}$ ?

Option 1: 1/2

Option 2: 2/3

Option 3: 3/2

Option 4: 6/4