CBSE 2022 Class 12 Economics Delhi Set 3 (Term 2)

Question : 3 of 6

Marks: +1, -0

At the break-even point level of incomes for the economy is

\₹ 10,000

crores and if the people tends to save 20 per cent of their additional income, then calculate the value of autonomous consumption.

Solution:

{\C}=\;\ov{ {\C}}+\;\text " by "\;

\;{[\;\text " At Break even point] "\;}

10,000=\;\ov{ {\C}}+0 ⋅ 8(10,000)

10,000=\;\ov{ {\C}}+8,000

10,000-8,000=\;\ov{ {\C}}=\₹ 2000 \;\text " crores "\;

Working Notes:

b\;= {\MPC}

{\C}\;= {\Y}

∵ \; {\S}\;=0

∴ \; {\C}\;=10,000

{\MPS}\;=0 ⋅ 2 \;\text " (given) "\;

{\MPC}\;=1- {\MPS}

\;=1-0 ⋅ 2=0-8

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