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CBSE 2020 Class 12 Economics Outside Delhi Set 1

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Question : 23 of 47
Marks: +1, -0
Answer the following questions on the basis of given figure:
(i) What does the shaded area AOB\text{AOB} indicate?
(ii) What is the significance of point BB ?
Solution:  
(i) The shaded area AOB\text{AOB} indicates "Dissavings".
(ii) At point BB, saving is zero and total income is equal to total consumption.
It means:
C  =yC\;=y
APC  =  cy  =  yy  =1\text{APC}\;=\;\frac{c}{y}\;=\;\frac{y}{y}\;=1
APS  =1−APC\text{APS}\;=1-\text{APC}
  =1−1=0\;=1-1=0
APS  =0\text{APS}\;=0
Point BB, average propensity to save is zero
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