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:

13 May Shift 1

If output equilibrium is less than the full employment level, then this condition is known as:

29 May Shift 1

Match List-I with List-II

List-I	List-II
(A) Ex-post investment	(I) AD function shifts upward
(B) Investment multiplier	(II) Planned Investment + Unplanned Investment
(C) Ex ante aggregate demand	(III) 1/1- MPC
(D) Owing to increase in investment	(IV) $I = c + cY$

Choose the correct answer from the options given below:

15 May Shift 1

Suppose at the initial equilibrium of $Y^*$ , there is an exogenous or autonomous shift in peoples' expenditure pattern – they suddenly become more thrifty.

What will be the sequential effect of the above on the economy?

(A) The sudden decline in MPC will imply a decrease in aggregate consumption spending and hence in aggregate demand.

(B) There emerges an excess supply in the economy, but that would mean a reduction in factor payments in the next round and hence a reduction in income.

(D) MPS of the economy increases, and hence MPC falls.

Choose the correct answer from the options given below:

CUET Economics 2025 2 June Shift 1 PYQs

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