Question

Using the given information, complete the following table:

Income (Y) (in ₹ crore)	Savings  (in ₹ crore)	Consumption  (in ₹ crore)	Average Propensity to Consume (APC)
0	(i)	30	-
100	0	30	1
200	30	170	0.85
300	60	240	0.8

• A. - 30, 120
• B. 30, 120
• C. 0, 70
• D. - 30, 100

Hint:

To calculate savings, use the formula: Savings = Income - Consumption. To calculate APC, use the formula: APC = Consumption / Income.

Answer 1

The Correct Option is D

\text{To complete the table:}
\text{1. The formula for Savings is: } S = Y - C \text{, where } C \text{ is consumption.}
\text{2. For Income = 0, Savings (i) is: } S = 0 - 30 = -30.
\text{3. For Income = 100, Savings (ii) is: } S = 100 - 30 = 70.
\[\text{4. APC is calculated as: } APC = \frac{C}{Y}.\] \[\text{For Income = 100, APC = } \frac{30}{100} = 1.\]