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Determination of Income and Employment — Economics STD 12 Humanities & Commerce — Question

Rajasthan BoardEnglish MediumSTD 12 Humanities & CommerceEconomicsDetermination of Income and Employment3 Marks
Question
What is APC? How is it calculated?
✓

Answer

The ratio of consumption expenditure to the corresponding level of income is known as average propensity to consume. It indicates the percentage (or ratio) of income which is being spent on consumption. It is worked out by dividing total consumption expenditure (C) by total income (Y).

$\text{APC}=\frac{\text{C}}{\text{Y}}$

S. No.
National Income (Y)
Consumption (C)
$\text{APC}=\frac{\text{C}}{\text{Y}}$
1.
0
80
--
2.
100
160
1.6
3.
200
240
1.2
4.
300
320
1.06
5.
400
400
1
6.
500
480
0.96

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