Macro

Income & Employment

Easy

Match List-I with List-II

List–I List–II
(A) Marginal propensity to consume (I) ΔS/ΔY
(B) Marginal propensity to save (II) ΔC/ΔY
(C) Average propensity to consume (III) S / Y
(D) Average propensity to save (IV) C / Y

Choose the correct answer from the options given below:

List–I	List–II
(A) Marginal propensity to consume	(I) ΔS/ΔY
(B) Marginal propensity to save	(II) ΔC/ΔY
(C) Average propensity to consume	(III) S / Y
(D) Average propensity to save	(IV) C / Y

(A) - (I), (B) - (II), (C) - (III), (D) - (IV)

(A) - (I), (B) - (III), (C) - (II), (D) - (IV)

(A) - (II), (B) - (I), (C) - (IV), (D) - (III)

(A) - (III), (B) - (IV), (C) - (I), (D) - (II)

✅ Correct Option: 3

Option 3: (A) - (II), (B) - (I), (C) - (IV), (D) - (III) -> In economics, Marginal Propensity to Consume (MPC) measures the change in consumption for a unit change in income, expressed as ΔC/ΔY. Marginal Propensity to Save (MPS) measures the change in savings for a unit change in income, expressed as ΔS/ΔY. Average Propensity to Consume (APC) is the ratio of total consumption to total income (C/Y), while Average Propensity to Save (APS) is the ratio of total savings to total income (S/Y). Note that MPC + MPS = 1 and APC + APS = 1, as income is either consumed or saved. -> correct

2025: 3 June Shift 1

Which of the following does not lead to fall in Aggregate Demand?

2026: 13 May Shift 2

The level of consumption, which is independent of income, is called ?

2026: 11 May Shift 2

Arrange the following in correct sequence with respect to the change in the demand for final goods and services:

A. Fall in employment in the economy.

B. Ex ante Aggregate Demand for final goods falls short of the Ex ante Output of final goods.

C. Fall in the income level in the economy.

D. Unintended accumulation of inventories.

Choose the correct answer from the options given below:

2025: 2 June Shift 1

Calculate Marginal Propensity to Save (MPS) and Average Propensity to Consume (APC) at income level of 200.

2025: 13 May Shift 1

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

2026: 11 May Shift 2

Match the LIST-I with LIST-II

LIST-I	LIST-II
A. Marginal Propensity to Save (MPS)	I. Consumption per unit of income.
B. Average Propensity to Save (APS)	II. Savings per unit of income.
C. Marginal Propensity to Consume (MPC)	III. Change in consumption per unit change in income.
D. Average Propensity to Consume (APC)	IV. Change in savings per unit change in income.

Choose the correct answer from the options given below:

Match List-I with List-II List–IList–II(A) Marginal propensity to consume(I) ΔS/ΔY(B) Marginal propensity to save(II) ΔC/ΔY(C) Average propensity to consume(III) S / Y(D) Average propensity to save(IV) C / Y Choose the correct answer from the options given below:

Solution

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CUET Economics Past Year Questions (Topic-Wise)

Match List-I with List-II

List–I List–II
(A) Marginal propensity to consume (I) ΔS/ΔY
(B) Marginal propensity to save (II) ΔC/ΔY
(C) Average propensity to consume (III) S / Y
(D) Average propensity to save (IV) C / Y

Choose the correct answer from the options given below: