When income is less than consumption, value of Average Propensity to Consume (APC) is. Option 1: More than 1. Option 2: Less than 1. Option 3: Less than zero. Option 4: Equal to zero.

The answer is 'More than 1.'. View full solution:

CUET Economics - When income is less than consumption, value of Average Propensity to Consume (APC) is. | PYQs + Solutions

CUET Economics 2025 2 June Shift 1

Macro

Medium

More than 1.

Less than 1.

Less than zero.

Equal to zero.

✅ Correct Option: 1

Related questions:

3 June Shift 1

Suppose, following data is presented, for an imaginary economy:

Autonomous Consumption = ₹ 100 crore

Marginal Propensity to Consume = 0.6

Investment = 200 crore.

Identify which of the following is the correct value of national income?

2 June Shift 1

Match List-I with List-II

List-I	List-II
(A) Marginal Propensity to Consume	(I) C/Y
(B) Marginal Propensity to Save	(II) ΔC/ ΔY
(C) Average Propensity to Save	(III) S/Y
(D) Average Propensity to Consume	(IV) ΔS/ ΔY

Choose the correct answer from the options given below:

3 June Shift 2

Even if income is zero, some consumption still takes place, which is independent of income. This type of consumption is called?