Question : When income rises from Rs. 5000 to Rs. 6000, savings rises by Rs. 600. Find MPC.

Option 1: 0.6

Option 2: 0.4

Option 3: 0.7

Option 4: None of the above.

Question

Question : Inventory rises above the desired level when

Option 1: Savings is more than investment

Option 2: Savings is less than investment

Option 3: Savings is equal to investment

Option 4: None of the above

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Answer 1

Correct Answer: 0.4

Solution : $Savings= 600, Consumption=400$

$MPC=\frac{\Delta Consumption}{\Delta Income}$

$MPC=\frac{\400}{1000}$

$MPC=0.4$

$Hence, Option B is correct.$

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Question : When income rises from Rs. 5000 to Rs. 6000, savings rises by Rs. 600. Find MPC. Option 1: 0.6 Option 2: 0.4 Option 3: 0.7 Option 4: None of the above.

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Question : When income rises from Rs. 5000 to Rs. 6000, savings rises by Rs. 600. Find MPC.

Option 1: 0.6

Option 2: 0.4

Option 3: 0.7

Option 4: None of the above.

Question : Inventory rises above the desired level when

Option 1: Savings is more than investment

Option 2: Savings is less than investment

Option 3: Savings is equal to investment

Option 4: None of the above

Question : If income is Rs.2000 and consumption is Rs. 1800. Calculate APC.

Option 1: 0.9

Option 2: 0.8

Option 3: 0.7

Option 4: None of the above.

Question : The positive square root of
[0.6 × 0.6 × 0.6 + 0.4 × 0.4 × 0.4 + 3 × 0.6 × 0.4 (0.6 + 0.4)] is equal to:
Option 1: 2.1736
Option 2: 1
Option 3: 0.21736
Option 4: 0.072

Question : What is the value of $\small \frac{(0.7)^{3}-(0.4)^{3}}{(0.7)^{2}+0.7\times 0.4+(0.4)^{2}}$?
Option 1: 0.3
Option 2: 0.7
Option 3: 0.9
Option 4: 1.1

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