CBSE 2020 Class 12 Economics Outside Delhi Set 3

Question : 1

Total: 7

SECTION-A

(Macro-economics)

If the value of Average Propensity to Save (APS) is 0.2 and National Income is ₹4,000 crore, then consumption will be
(Choose the correct alternative.)

₹4,000 crores
₹3,200 crores
₹3,800 crores
₹2,600 crores

Solution:

‌ APS ‌‌=‌

‌ Saving ‌

‌ Income ‌

0.2‌=‌

‌ Saving ‌

4,000

Saving =0.2×4,000=₹800
Consumption = Income - Saving
C‌=Y−S
‌=4,000−800
C‌=₹3,200
(b) ₹3,200 crores

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