Read the following statements: Assertion (A) and Reason (R). Choose the correct alternative from those given below:
Assertion (A): The maximum value of Marginal Propensity to Save (MPS) can be unity.
Reason (R): At the break-even level of income, savings are zero.
Read the following statements: Assertion (A) and Reason (R). Choose the correct alternative from those given below:
Assertion (A): The maximum value of Marginal Propensity to Save (MPS) can be unity.
Reason (R): At the break-even level of income, savings are zero.
Show Hint
- Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A).
- Both Assertion (A) and Reason (R) are true, but Reason (R) is {not} the correct explanation of Assertion (A).
- Assertion (A) is true, but Reason (R) is false.
- Assertion (A) is false, but Reason (R) is true.
The Correct Option is B
Solution and Explanation
Assertion (A): This is true because the maximum value of MPS can be unity when all additional income is saved and none is consumed.
Reason (R): This is true because, at the break-even level of income, all income is consumed, leaving savings at zero.
Conclusion: Although both statements are correct, the reason does not explain the assertion.
Top Questions on Debts
- \[ \begin{array}{|c|l|} \hline \textbf{Column I} & \textbf{Column II} \\ \hline \text{1. Cement shop owner} & \text{(iii) Self-employed} \\ \hline \text{2. Construction worker} & \text{(ii) Casual wage workers} \\ \hline \text{3. Civil engineer} & \text{(i) Regular salaried} \\ \hline \end{array} \]
- On the basis of the data given below, discuss the shift in output and employment sector-wise, in India and China: \begin{center} \begin{tabular}{|c|c|c|c|c|c|c|} \hline Sector & \multicolumn{3}{c|}{Contribution to GVA (\%)} & \multicolumn{3}{c|}{Distribution of Workforce (\%)}
\hline & India & China & Pakistan & India & China & Pakistan
\hline Agriculture & 16 & 7 & 24 & 43 & 26 & 41
\hline Industry & 30 & 41 & 19 & 25 & 28 & 24
\hline Services & 54 & 52 & 57 & 32 & 46 & 35
\hline \end{tabular} \end{center} - “Micro-credit programmes have helped to fill in the gaps in the formal credit system.”
Justify the given statement. - Discuss any two factors that lead to stagnating Indian agriculture sector during British rule.
- Interpret the given picture and explain any one strategy to control it from becoming an ecological disaster. \begin{figure}h! \centering \includegraphicswidth=0.6width{Screenshot 2025-01-21 170033.png} % Replace with the actual image path \caption{Industrial Pollution and Ecological Disaster} \label{fig:ecological_disaster} \end{figure}
Questions Asked in CBSE CLASS XII exam
- CBSE CLASS XII - 2024
- Money and Inflation
- “If actual demand for final goods falls short of the actual output of final goods corresponding to full employment level, it may lead to an unintended accumulation of inventories.”
Do you agree with the given statement? Give valid reasons in support of your answer.- CBSE CLASS XII - 2024
- Economic History
- \[ \begin{array}{|c|l|r|} \hline \textbf{S.No.} & \textbf{Items} & \textbf{Amount (in ₹ crore)} \\ \hline (i) & \text{Wages and Salaries} & 2,000 \\ \hline (ii) & \text{Rent and Interest} & 800 \\ \hline (iii) & \text{Corporate Tax} & 500 \\ \hline (iv) & \text{Undistributed Profit} & 300 \\ \hline (v) & \text{Dividend} & 200 \\ \hline (vi) & \text{Depreciation} & 150 \\ \hline (vii) & \text{Net Factor Income from Abroad} & -50 \\ \hline \end{array} \]
- CBSE CLASS XII - 2024
- Money and Inflation
“Depreciation of currency may promote exports of a nation.”
Defend or refute the given statement with valid arguments.- CBSE CLASS XII - 2024
- Cost Function and Marginal Cost
“Accommodating transactions are undertaken to maintain stability in the Balance of Payments Account.”
Justify the given statement with a valid explanation.- CBSE CLASS XII - 2024
- Cost Function and Marginal Cost