Question 26
MediumOriginal questionAn economy's consumption schedule:
| Income (₹ crore) | 0 | 100 | 200 | 300 | 400 |
|---|---|---|---|---|---|
| Consumption (₹ crore) | 40 | 115 | 190 | 265 | 340 |
What is the MPC?
Show the answer and explanation
CorrectNot quiteAnswer B
Correct answer: B
Explanation
Each ₹100 crore rise in income raises consumption by ₹75 crore (40 → 115 → 190 …).
MPC = 75 ÷ 100 = 0.75.
- Concept
- MPC from a schedule
- Typical timeTypical
- 70 s
- Your timeYours
- —
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