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. 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=50+0.6Y, consumption is 140 when Y= 150.
2. When Saving function is S= -50+0.4Y, savings is 10 when Y= 150.

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.
 

Question : Which of the following statement are true?

1. Slope of consumption curve is indicated by APC.
2. According to Keynesian theory of employment, Ex-ante savings and ex-post savings are always equal.

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 APC will be -0.05.
2. When consumption function is C=60+0.6Y, savings are -60 at Y=0.

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.