Question

Match the columns: 

(i) Flow 
(ii) MPS 
(iii) Inferior goods 
(iv) Stock 
(v) The slope of budget line 
(vi) APC 

'A' and 'B' columns: 

'A' 
(i) Flow 
(ii) MPS 
(iii) Inferior goods 
(iv) Stock 
(v) The slope of budget line 
(vi) APC 

'B' 
(a) Negative 
(b) Coarse cereals 
(c) Marginal Propensity to Consume 
(d) 1 - APC 
(e) Point of time 
(f) Period of time 
(g) C/Y

Hint:

The slope of the budget line relates to the trade-off between two goods, while the APC is the proportion of income spent on consumption.

Answer 1

Step 1: Matching the columns.
- (i) Flow corresponds to (f) Period of time, as flow represents a measure over time. 

- (ii) MPS corresponds to (g) C/Y, since Marginal Propensity to Save is the complement of the Marginal Propensity to Consume. 

- (iii) Inferior goods corresponds to (a) Negative, because inferior goods have a negative income elasticity, meaning their demand decreases as income increases. 

- (iv) Stock corresponds to (e) Point of time, because stock refers to a quantity measured at a particular point in time. 

- (v) The slope of the budget line corresponds to (d) 1 - APC, as the slope of the budget line is the rate at which the consumer can trade off one good for another, related to consumption. 

- (vi) APC corresponds to (c) Marginal Propensity to Consume, as APC is related to total consumption divided by income, representing the proportion of income spent.
 

Step 2: Conclusion.
Thus, the correct matches are: (i) - (f), (ii) - (g), (iii) - (a), (iv) - (e), (v) - (d), (vi) - (c).