Practical Questions - APC and APS

For Solving the Questions, we need to Remember following formulas

Income = Consumption + Savings

Y = C + S

APC = Consumption/ Income

APC = C/Y

APS = Savings/ Income

APS = C/Y

Example 1 

Calculate APC and APS from the following schedule.

Note

Sometimes in Question

Disposable income is mentioned

Note that

Disposable income and Income (Y) are same things

Example 3

(i) The disposable income (Y) is ₹ 1200 crores and consumption expenditure (C) is ₹ 800 crores. Calculate the APC.

(ii) If saving is ₹ 500, out of an income of ₹ 5,000, how much is the APS?

(iii) If disposable income is ₹ 1,000 and consumption expenditure is ₹ 750, find out average propensity to save.

(iv) If income is ₹ 500 and saving are ₹ 100, calculate APC.

(v) When income rises from ₹ 1,000 to ₹ 1,100, saving rise by ₹ 30. Find out MPS and MPC.

(i) Disposable Income (Y) = 1200

    Consumption expenditure (C) = 800

    Calculate APC

(ii) Savings = 500

     Income = 5000

     Find APS

(iii) Disposable Income (Y) = 1000

      Consumption expenditure (C) = 750

      Find APS

(iv) Income = 500

      Savings = 100

      Calculate APC

NCERT Questions

No questions in this part

Other Books

Question 1

Calculate APC and APS from the following schedue: