Question
Explain ‘consumption function’ with the help of a schedule and diagram.
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|
|
|
(₹ crores)
|
|
(i)
|
Corporation tax
|
100
|
|
(ii)
|
Private final consumption expenditure
|
900
|
|
(iii)
|
Personal Income tax
|
120
|
|
(iv)
|
Government final consumption expenditure
|
200
|
|
(v)
|
Undistributed profits
|
50
|
|
(vi)
|
Change in stocks
|
(-)20
|
|
(vii)
|
Net domestic fixed capital formation
|
120
|
|
(viii)
|
Net imports
|
10
|
|
(ix)
|
Net indirect tax
|
150
|
|
(x)
|
Net factor income from abroad
|
(-)10
|
|
(xi)
|
Private income
|
1000
|
| $₹.$ in crores | ||
| $(i)$ | Gross domestic fixed capital formation | $400$ |
| $(ii)$ | Private final consumption expenditure | $8000$ |
| $(iii)$ | Government final consumption expenditure | $3000$ |
| $(iv)$ | Change in stock | $50$ |
| $(v)$ | Consumption of fixed capital | $40$ |
| $(vi)$ | Net indirect taxes | $100$ |
| $(vii)$ | Net exports | $(–60) $ |
| $(viii)$ | Net factor income to abroad | $(–80) $ |
| $(ix)$ | Net current transfers from abroad | $100$ |
| $(x)$ | Dividend | $100$ |
| (Rs. Crore) | |
|
(-)5 |
|
500 |
|
20 |
|
(-)10 |
|
200 |
|
100 |
|
120 |
|
30 |
|
(-)20 |
| $₹ ($in crores$)$ | ||
| $(i)$ | Compensation of employees | $2,500$ |
| $(ii)$ | Profit | $700$ |
| $(iii)$ | Mixed income of self$-$employed | $7,500$ |
| $(iv)$ | Government final consumption expenditure | $3,000$ |
| $(v)$ | Rent | $400$ |
| $(vi)$ | Interest | $350$ |
| $(vii)$ | Net factor income from abroad | $50$ |
| $(viii)$ | Net current transfers to abroad | $100$ |
| $(ix)$ | Net indirect taxes | $150$ |
| $(x)$ | Depreciation | $70$ |
| $(xi)$ | Net exports | $40$ |
| $($Rs. crore$)$ | |
|
$300$ |
|
$1000$ |
|
$(-) 20$ |
|
$100$ |
|
$130$ |
|
$30$ |
|
$50$ |
|
$40$ |
|
$200$ |
|
$100$ |
|
$20$ |
|
$0$ |