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Which of the following are correctly matched?
1. Marginal propensity to consume (APC): it is the consumption per unit of income
2. Average propensity to consume (MPC): it is the change in consumption per unit change in income
3. Average propensity to save (APS): it is the savings per unit of income
Choose from the following options.
  • a)
    1 and 2 Only
  • b)
    2 and 3 Only
  • c)
    1 and 3 Only
  • d)
    3 Only
Correct answer is option 'D'. Can you explain this answer?
Most Upvoted Answer
Which of the following are correctly matched? 1. Marginal propensity ...


Explanation:

Correctly matched concepts:

- Marginal propensity to consume (APC): This represents the proportion of an increase in income that is spent on consumption. It is the change in consumption divided by the change in income. Therefore, it is correctly defined as the consumption per unit of income.

- Average propensity to save (APS): This is the proportion of total income that is saved. It is savings per unit of income. Hence, this definition is also correct.

Incorrectly matched concept:

- Average propensity to consume (MPC): This is the proportion of total income that is spent on consumption, not the change in consumption per unit change in income. The correct definition for this concept should be the total consumption divided by total income.

Therefore, the correct matches are:

- Marginal propensity to consume (APC): it is the consumption per unit of income
- Average propensity to save (APS): it is the savings per unit of income

These definitions accurately reflect the concepts and their relationships to income and consumption or savings.
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Community Answer
Which of the following are correctly matched? 1. Marginal propensity ...
Average propensity to save (APS): it is the savings per unit of income
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Which of the following are correctly matched? 1. Marginal propensity to consume (APC): it is the consumption per unit of income2. Average propensity to consume (MPC): it is the change in consumption per unit change in income3. Average propensity to save (APS): it is the savings per unit of incomeChoose from the following options.a) 1 and 2 Onlyb) 2 and 3 Onlyc) 1 and 3 Onlyd) 3 OnlyCorrect answer is option 'D'. Can you explain this answer?
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Which of the following are correctly matched? 1. Marginal propensity to consume (APC): it is the consumption per unit of income2. Average propensity to consume (MPC): it is the change in consumption per unit change in income3. Average propensity to save (APS): it is the savings per unit of incomeChoose from the following options.a) 1 and 2 Onlyb) 2 and 3 Onlyc) 1 and 3 Onlyd) 3 OnlyCorrect answer is option 'D'. Can you explain this answer? for UPSC 2025 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about Which of the following are correctly matched? 1. Marginal propensity to consume (APC): it is the consumption per unit of income2. Average propensity to consume (MPC): it is the change in consumption per unit change in income3. Average propensity to save (APS): it is the savings per unit of incomeChoose from the following options.a) 1 and 2 Onlyb) 2 and 3 Onlyc) 1 and 3 Onlyd) 3 OnlyCorrect answer is option 'D'. Can you explain this answer? covers all topics & solutions for UPSC 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Which of the following are correctly matched? 1. Marginal propensity to consume (APC): it is the consumption per unit of income2. Average propensity to consume (MPC): it is the change in consumption per unit change in income3. Average propensity to save (APS): it is the savings per unit of incomeChoose from the following options.a) 1 and 2 Onlyb) 2 and 3 Onlyc) 1 and 3 Onlyd) 3 OnlyCorrect answer is option 'D'. Can you explain this answer?.
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