CBSE 2020 Class 12 Economics Outside Delhi Set 3 - Question 1 | ...

CBSE 2020 Class 12 Economics Outside Delhi Set 3

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Question : 1 of 7

Marks: +1, -0

SECTION-A

(Macro-economics)

If the value of Average Propensity to Save (APS) is 0.2 and National Income is

\₹ 4,000

crore, then consumption will be
(Choose the correct alternative.)

$\₹ 4,000$ crores
$\₹ 3,200$ crores
$\₹ 3,800$ crores
$\₹ 2,600$ crores

Solution:

\;\text " APS "\;\;=\;{\;\text " Saving "\;}/{\;\text " Income "\;}

0.2\;=\;{\;\text " Saving "\;}/{4,000}

Saving

=0.2 × 4,000=\₹ 800

Consumption

=

Income - Saving

C\;=Y-S

\;=4,000-800

C\;=\₹3,200

(b)

\₹ 3,200

crores

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