Download App

Model Paper 3 — Economics STD 12 Commerce — Question

CBSE BoardEnglish MediumSTD 12 CommerceEconomicsModel Paper 34 Marks
Question
With reference to Consumption Function answer the following questions:
i. What is consumption function?
ii. What is break even point?
iii. Consumption curve starts from Y-axis. What does this implies?
✓

Answer

i. Consumption Function refers to functional relationship between consumption and national income.
ii. It is the point where consumption is equal to national income.
iii. It implies that there is autonomous consumption even when national income is zero.

Need a full question paper?

Generate a complete, print-ready paper with questions like this in minutes — across 16+ boards, with answer keys.

Start Generating Free

Explore more

More "4 Marks Question" from Model Paper 3→Model Paper 3 — all question types→Economics STD 12 Commerce question papers→CBSE Board STD 12 Commerce question papers→CBSE Board question paper generator→

Similar questions

Explain the ‘store of value’ function of money.
→
Calculate $NNP_{PC}$ by Income and Expenditure Method.
S. No
Particulars
(₹) In Crose
1.
Rent.
3000
2.
Wages and salaries.
3000
3.
direct tax.
6000
4.
Intermediate consumption by government.
1500
5.
Net Import.
500
6.
Gross domestic capital formation.
7500
7.
Change in stock.
1000
8.
Income paid to abroad.
4000
9.
Current replacement cost.
1000
10.
Distributed profit.
1200
11.
Personal disposable income.
12000
12.
Interest.
7000
13
Household saving.
2000
14.
Subsidies.
1000
15.
Export.
1500
16.
Sale of goods and services by government.
500
17.
Income from entrepreneurship.
3000
18.
Wages and salaries by the government.
3000
→
Explain 'government’s bank' function of central bank.
→
Differentiate between National Income at constant price ald national income at current price?
→
How does a central bank perform the function of controller of credit?
→
Calculate autonomous consumption expenditure from the following data about an economy which is in equilibrium.
National income= 1200
Marginal propensity to save= 0.20
Investment expenditure= 100
→
Distinguish between ‘fiscal deficit’ and ‘revenue deficit’. What does fiscal deficit indicate?
→
An economy is in equilibrium. Calculate the National Income from the following:
Autonomous Consumption = 120
Marginal Propensity to Save = 0·2
Investment Expenditure = 150
→
Tax rates on higher income group have been increased. Which economic value does it reflect? Explain.
→
Explain 'Government's Bank' function of central bank.
→