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

Rajasthan BoardEnglish MediumSTD 12 Humanities & CommerceEconomicsDetermination of Income and Employment1 Mark
Question
What is meant by Average Propensity to Consume?
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Answer

Average Propensity to Consume is the ratio of aggregate consumption expenditure (C) to aggregate income (Y). $\text{APC}=\frac{\text{C}}{\text{Y}'}$ i.e. it represents the amount of total income which is consumed.

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