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Which of these are correctly matched?
1. The consumers does not increase consumption at all: MPC = 0)
2. Use entire change in income on consumption: MPC = 1
3. Use part of the change in income for changing consumption: 0 < mpc="" />< />
Choose from the following options.
- a)1 and 2 Only
- b)2 and 3 Only
- c)1 and 3 Only
- d)All of them
Correct answer is option 'D'. Can you explain this answer?
Most Upvoted Answer
Which of these are correctly matched? 1. The consumers does not incre...
- When income changes, change in consumption ∆C can never exceed the change in income (Y) ∆. The maximum value which c can take is 1.
- On the other hand, consumers may choose not to change consumption even when income has changed. In this case MPC = 0. Generally, MPC lies between 0 and 1 (inclusive of both values).
- This means that as income increases either the consumers does not increase consumption at all (MPC = 0) or use entire change in income on consumption (MPC = 1) or use part of the change in income for changing consumption (0 < mpc="" />< 1)="" />
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Which of these are correctly matched? 1. The consumers does not incre...
The correct answer is option 'D' - All of them.
Explanation:
1. The consumers does not increase consumption at all: MPC = 0
The Marginal Propensity to Consume (MPC) is the proportion of an increase in income that is spent on consumption. A MPC of 0 means that consumers do not increase their consumption at all when their income increases. In other words, they save all of the additional income they receive. This is a valid matching.
2. Use entire change in income on consumption: MPC = 1
A MPC of 1 means that consumers spend the entire change in their income on consumption. This means that when their income increases, they increase their consumption by the same amount. This is also a valid matching.
3. Use part of the change in income for changing consumption: 0 < mpc="" />< />
A MPC between 0 and 1 indicates that consumers use only a portion of their additional income for consumption. They save the remaining portion of their income. This is also a valid matching.
In summary, all three statements correctly match the description of the Marginal Propensity to Consume (MPC). The MPC is a measure of how much consumers spend on consumption when their income changes. It can be 0, indicating no increase in consumption, 1, indicating the entire change in income is spent on consumption, or any value between 0 and 1, indicating a partial increase in consumption.
To summarize:
- MPC = 0: Consumers do not increase consumption at all.
- MPC = 1: Consumers use the entire change in income on consumption.
- 0 < mpc="" />< 1:="" consumers="" use="" only="" a="" part="" of="" the="" change="" in="" income="" for="" changing="" />
These matching statements accurately describe the concept of MPC and its different values.
Explanation:
1. The consumers does not increase consumption at all: MPC = 0
The Marginal Propensity to Consume (MPC) is the proportion of an increase in income that is spent on consumption. A MPC of 0 means that consumers do not increase their consumption at all when their income increases. In other words, they save all of the additional income they receive. This is a valid matching.
2. Use entire change in income on consumption: MPC = 1
A MPC of 1 means that consumers spend the entire change in their income on consumption. This means that when their income increases, they increase their consumption by the same amount. This is also a valid matching.
3. Use part of the change in income for changing consumption: 0 < mpc="" />< />
A MPC between 0 and 1 indicates that consumers use only a portion of their additional income for consumption. They save the remaining portion of their income. This is also a valid matching.
In summary, all three statements correctly match the description of the Marginal Propensity to Consume (MPC). The MPC is a measure of how much consumers spend on consumption when their income changes. It can be 0, indicating no increase in consumption, 1, indicating the entire change in income is spent on consumption, or any value between 0 and 1, indicating a partial increase in consumption.
To summarize:
- MPC = 0: Consumers do not increase consumption at all.
- MPC = 1: Consumers use the entire change in income on consumption.
- 0 < mpc="" />< 1:="" consumers="" use="" only="" a="" part="" of="" the="" change="" in="" income="" for="" changing="" />
These matching statements accurately describe the concept of MPC and its different values.
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Which of these are correctly matched? 1. The consumers does not increase consumption at all: MPC = 0)2. Use entire change in income on consumption: MPC = 13. Use part of the change in income for changing consumption: 0 Choose from the following options.a) 1 and 2 Onlyb) 2 and 3 Onlyc) 1 and 3 Onlyd) All of themCorrect answer is option 'D'. Can you explain this answer?
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Which of these are correctly matched? 1. The consumers does not increase consumption at all: MPC = 0)2. Use entire change in income on consumption: MPC = 13. Use part of the change in income for changing consumption: 0 Choose from the following options.a) 1 and 2 Onlyb) 2 and 3 Onlyc) 1 and 3 Onlyd) All of themCorrect 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 these are correctly matched? 1. The consumers does not increase consumption at all: MPC = 0)2. Use entire change in income on consumption: MPC = 13. Use part of the change in income for changing consumption: 0 Choose from the following options.a) 1 and 2 Onlyb) 2 and 3 Onlyc) 1 and 3 Onlyd) All of themCorrect 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 these are correctly matched? 1. The consumers does not increase consumption at all: MPC = 0)2. Use entire change in income on consumption: MPC = 13. Use part of the change in income for changing consumption: 0 Choose from the following options.a) 1 and 2 Onlyb) 2 and 3 Onlyc) 1 and 3 Onlyd) All of themCorrect answer is option 'D'. Can you explain this answer?.
Which of these are correctly matched? 1. The consumers does not increase consumption at all: MPC = 0)2. Use entire change in income on consumption: MPC = 13. Use part of the change in income for changing consumption: 0 Choose from the following options.a) 1 and 2 Onlyb) 2 and 3 Onlyc) 1 and 3 Onlyd) All of themCorrect 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 these are correctly matched? 1. The consumers does not increase consumption at all: MPC = 0)2. Use entire change in income on consumption: MPC = 13. Use part of the change in income for changing consumption: 0 Choose from the following options.a) 1 and 2 Onlyb) 2 and 3 Onlyc) 1 and 3 Onlyd) All of themCorrect 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 these are correctly matched? 1. The consumers does not increase consumption at all: MPC = 0)2. Use entire change in income on consumption: MPC = 13. Use part of the change in income for changing consumption: 0 Choose from the following options.a) 1 and 2 Onlyb) 2 and 3 Onlyc) 1 and 3 Onlyd) All of themCorrect answer is option 'D'. Can you explain this answer?.
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