Question 27
MediumOriginal questionAn economy's consumption schedule:
| Income (₹ crore) | 0 | 100 | 200 | 300 | 400 |
|---|---|---|---|---|---|
| Consumption (₹ crore) | 40 | 115 | 190 | 265 | 340 |
What is the APC when income is ₹100 crore?
Show the answer and explanation
CorrectNot quiteAnswer D
Correct answer: D
Explanation
APC = C ÷ Y = 115 ÷ 100 = 1.15.
APC is above 1 because income is below the break-even level: people are dissaving.
- Concept
- APC above 1
- Typical timeTypical
- 70 s
- Your timeYours
- —
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