Consumption expenditure
In an economy 75% of increase in income is spent on the consumption. Investment raised by Rs. 1000 Crore. Compute: (A) Total increase in income(B) Total increase in consumption expenditure
In an economy 75% of increase in income is spent on the consumption. Investment raised by Rs. 1000 Crore. Compute:
(A) Total increase in income(B) Total increase in consumption expenditure
Expert
MPC = 75% = 75/100 =3/4MPS = 1-3/4 = 1/4 K=4(A) DY = DI x K= 1000 x 4= 4000 Crore(B) DY = DC + DIDC = DY - DI= 4000-1000= Rs. 3000 Crore
The areas illustrates in this Lorenz diagram can be used to compute a Gini index as: (i) (cow + pig)/cow. (ii) cow2/(cow + pig). (iii) pig2/(cow + pig). (iv) cow/(cow + pig) (v) (cow + horse)/pig. Q : Oligopoly and economic welfare in long In an oligopoly, as opposite to monopolistic or pure competition, industry output within the long run is probable to be: (1) lower along with reduced prices. (2) about similar but with higher prices. (3) lower and with higher prices.
In an oligopoly, as opposite to monopolistic or pure competition, industry output within the long run is probable to be: (1) lower along with reduced prices. (2) about similar but with higher prices. (3) lower and with higher prices.
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