Economics Quiz

What does APC (Average Propensity to Consume) indicate?

• The ratio of aggregate consumption expenditure to aggregate income

• The ratio of aggregate saving to aggregate income

• The ratio of change in consumption to change in income

• The ratio of change in saving to change in income

What does APC (Average Propensity to Consume) indicate?

• The ratio of aggregate consumption expenditure to aggregate income

• The ratio of aggregate saving to aggregate income

• The ratio of change in consumption to change in income

• The ratio of change in saving to change in income

Can APC be more than 1?

• Yes, when consumption is more than income i.e in case of disaving

• No, as savings cannot be more than income

• No, as additional consumption cannot be more than additional income

• No, as additional saving cannot be more than additional income

What does APS (Average Propensity to Save) indicate?

• The ratio of aggregate saving to aggregate income

• The ratio of aggregate consumption expenditure to aggregate income

• The ratio of change in saving to change in income

• The ratio of change in consumption to change in income

Can APS be more than 1?

• No, as savings cannot be more than income

• Yes, when consumption is more than income i.e in case of disaving

• No, as additional consumption cannot be more than additional income

• No, as additional saving cannot be more than additional income

What does MPC (Marginal Propensity to Consume) indicate?

• The ratio of change in consumption to change in income

• The ratio of aggregate saving to aggregate income

• The ratio of aggregate consumption expenditure to aggregate income

• The ratio of change in saving to change in income

Can MPC be more than 1?

• No, as additional consumption cannot be more than additional income

• Yes, when consumption is more than income i.e in case of disaving

• No, as savings cannot be more than income

• No, as additional saving cannot be more than additional income

What does MPS (Marginal Propensity to Save) indicate?

• The ratio of change in saving to change in income

• The ratio of aggregate saving to aggregate income

• The ratio of aggregate consumption expenditure to aggregate income

• The ratio of change in consumption to change in income

Can MPS be more than 1?

• No, as additional saving cannot be more than additional income

• Yes, when consumption is more than income i.e in case of disaving

• No, as savings cannot be more than income

• No, as additional consumption cannot be more than additional income

How does MPC (Marginal Propensity to Consume) affect the level of income?

• MPC will lead to an increase in production and level of income

• MPC will bring down the level of income

• MPC has no effect on the level of income

• MPC will lead to a decrease in production and level of income