What is APC? How is it calculated?
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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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Similar Questions
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