Question : Which of the following statement are true?

1. In a two sector economy, if consumption is equal to income, average propensity to save will be zero.
2. In a two sector economy if income is zero consumption will also be zero.

Option 1: Both are true.
 

Option 2: Both are false.
 

Option 3: Statement 1 is true, statement 2 is false.
 

Option 4: Statement 1 is false, statement 2 is true.
 

Question : Which of the following statement are true?

1. When consumption function is C=40+0.8Y, savings will be equal to -40 at zero level of income.
2. As per above consumption function, MPS= 0.2 

Option 1: Both are true.
 

Option 2: Both are false.
 

Option 3: Statement 1 is true, statement 2 is false.
 

Option 4: Statement 1 is false, statement 2 is true.
 

Question : Which of the following statement are true?

1. Autonomous investment is not affected by changes in the level of income.
2. Autonomous investment is not guided solely by the profit motive. 

Option 1: Both are true.
 

Option 2: Both are false.
 

Option 3: Statement 1 is true, statement 2 is false.
 

Option 4: Statement 1 is false, statement 2 is true.
 

Question : Which of the following statement are true?

1. If APC is 1.05 then APS would be positive.
2. MPC represents slope of the consumption function.

Option 1: Both are true.
 

Option 2: Both are false.
 

Option 3: Statement 1 is true, statement 2 is false.
 

Option 4: Statement 1 is false, statement 2 is true.
 

Question : Which of the following statement are true?

1. At breakeven point, income and consumption are equal.
2. Equality between AD and AS implies the equality between income and AD.

Option 1: Both are true.
 

Option 2: Both are false.
 

Option 3: Statement 1 is true, statement 2 is false.
 

Option 4: Statement 1 is false, statement 2 is true.