From the given table, identify that level of income, where Average Propensity to Save (APS) becomes zero:
From the given table, identify that level of income, where Average Propensity to Save (APS) becomes zero:
Show Hint
- 50
- 100
- 200
- 0
The Correct Option is B
Solution and Explanation
The Average Propensity to Save (APS) is calculated as: \[ {APS} = \frac{{Savings}}{{Income}} = \frac{{Income} - {Consumption}}{{Income}} \] At Income = 100 crore, consumption is also 100 crore. Hence, savings will be zero: \[ {Savings} = {Income} - {Consumption} = 100 - 100 = 0 \] Thus, APS = 0 when income is 100 crore.
Conclusion: The APS becomes zero at 100 crore income because savings equal zero when consumption is equal to income.
Top GATE XH-C1 Economics Questions
- “Mr. Sahotra borrowed funds from bank for purchasing a new house.” From the above statement, identify the indicated function of money:
- If in an economy the initial deposits are Rs.4,000 crore and Reserve Ratio (RR) is 10 percent. The value of total deposit created would be Rs. crore.
- Identify which of the following is not considered as ‘Normal Resident’ of India?
Read the following statements carefully:
Statement 1: Expost savings and Expost investments are equal at all levels of income.
Statement 2: Under the effective demand principle, the equilibrium output is equal to exante Aggregate Demand (AD). In the light of the given statements, choose the correct alternative from the following:- In a hypothetical economy, if entire additional income is consumed, the value of investment multiplier would be . (Fill up the blank with the correct alternative.)
Top GATE XH-C1 National Income Accounting Questions
- In a hypothetical economy, if entire additional income is consumed, the value of investment multiplier would be . (Fill up the blank with the correct alternative.)
- From the given table, identify that level of income, where Average Propensity to Save (APS) becomes zero: \[ \begin{array}{|c|c|c|} \hline \textbf{Income (Rs. crore)} & \textbf{Consumption (Rs. crore)} & \textbf{Savings (Rs. crore) (Y - C)} \\ \hline 0 & 50 & -50 \\ \hline 50 & 75 & -25 \\ \hline 100 & 100 & 0 \\ \hline 200 & 150 & 50 \\ \hline 300 & 200 & 100 \\ \hline 400 & 250 & 150 \\ \hline \end{array} \]
The level of income where Average Propensity to Save (APS) becomes zero is at Income = Rs. 100 crore, since savings (\( S = Y - C \)) equals zero at this point.
Identify, what does the shaded area (change in EFG), in the given figure indicate?
I. Consumption > Income
II. Saving = Zero (0)
III. Consumption < Income
IV. Saving < Zero (0)- From the following data, estimate the value of Net Indirect Taxes (NIT): \[ \begin{array}{|c|l|c|} \hline \textbf{S.No.} & \textbf{Particulars} & \textbf{Amount (in Rs. crore)} \\ \hline (i) & \text{Net National Product at Market Price } (NNP_{mp}) & 1,400 \\ \hline (ii) & \text{Net Factor Income from Abroad } (NFIA) & 100 \\ \hline (iii) & \text{Gross National Product at Factor Cost } (GNP_{fc}) & 1,300 \\ \hline (iv) & \text{Consumption of Fixed Capital} & 100 \\ \hline \end{array} \]
- "In an economy, Aggregate Demand (AD) is more than Aggregate Supply (AS)." Elaborate the possible impacts of the same, on the level of output, income and employment.
Top GATE XH-C1 Questions
- Amma's tone in the context of the given passage is that of :
For Amma, the difference between men and women was a kind of discrimination and inequality; she felt strongly about women's rights but was not familiar with concepts like gender and patriarchy. She would have dismissed Betty Friedan because she was predominantly dealing with the problems of white middle-class women in the United States. Amma, and women of her generation, could de-link the oppression of women from the wider struggle for the liberation of human beings from class exploitation and imperialism. So Amma continued to play her role as mother and wife, but would often complain: 'I am a doormat on which everyone wipes their emotional dirt off". - Fill in the blanks by choosing the correct sequence for the following passage:
I am wearing for the first time some (i)_____ that I have never been able to wear for long at a time, as they are horribly tight. I usually put them on just before giving a lecture. The painful pressure they exert on my feet goads my oratorical capacities to their utmost. This sharp and overwhelming pain makes me sing like a nightingale or like one of those Neapolitan singers who also wear (ii)_______ that are too tight. The visceral physical longing, the overwhelming torture provoked by my (iii)_______ forces me to extract from words distilled and sublime truths, generalized by the supreme inquisition of the pain my (iv)_______ suffer. - The appropriate synonym for the word ‘ignite' in the following passage will be :
Spirituality must be integrated with education. Self-realization is the focus. Each one of us must become aware of our higher self. We are links of a great past to a grand future. We should ignite our dormant inner energy and let it guide our lives. The radiance of such minds embarked on constructive endeavor will bring peace, prosperity and bliss to this nation. - Which of the following sentences is punctuated correctly ?
- Fill in the blanks with the correct combination of tenses for the given sentence :
Darwin's work (i)_______ a related effect that (ii) ________ influenced the development of environmental politics - a 'decentering' of the human being.