Skip to content
Question 25 of 37

Q.The average propensity to consume is measured by :

(a) Y/C
(b) C/Y
(c) C + Y
(d) CY
Puducherry TnboardTamil Nadu HSC (DGE) Commerce Board 2024MCQ· 1mImportance★★★★★
68% · 25/37 Questions
🔒 Locked · start free trial →

You're viewing a preview — the full solution, concept, methods & PYQ mapping are locked.

Start your 14-day free trial to unlock the full solution →

The average propensity to consume (APC) is measured as C divided by Y.

The average propensity to consume is the ratio of total consumption expenditure to total income at a given level of income. It tells us the proportion of income that is consumed.

APC = C / Y, where C = total consumption and Y = total income.

…

Start your 14-day free trial to unlock the full solution →

Unlock everything free for 14 days

  • Full step-by-step solutions
  • Concept-first explanations
  • Methods, shortcuts & mistakes
  • PYQ mapping + timed mock tests
Start 14-day free trial →See Plans & Pricing →

Full access for 14 days. No credit card required.

←Previous questionQ16 — The sum of the MPC and MPS is : (a) 0.1 (b) 1 (c) 1.1 (d) 2→Next questionQ18 — (a) Describe the phases of Trade Cycle. OR (b) Write a note on : (i) P…