--%>

Difference between APC and MPC

Differentiate between APC and MPC. The value of which of them can be greater than another and when?

Answer:

APC is the average consumption stage of people. Which is equivalent to = APC = C/Y.
MPC is the addition in consumption due to rise in income that is, MPC = ΔC / ΔY.
APC can be greater than one whenever consumption is more than Income.

   Related Questions in Macroeconomics

  • Q : Transfer of wealth problem The transfer

    The transfer of wealth from developed countries to oil exporting countries (abbreviated as OPEC) which followed sky-rocketing oil prices in the year 1970s points out that the price elasticity of demand for oil was: (i) Unitary. (ii) Relatively high. (

  • Q : Paradox of Value-High values of

    The fact that most of the necessities for life like water are priced much lower than the frivolities like diamonds is addressed by the: (1) Utilitarian enigma. (2) Law of diminishing marginal utility. (3) Rational ignorance of hypothesis. (4) Paradox of the value. (5)

  • Q : International trade the most frequently

    the most frequently asked question on foreign direct invetment

  • Q : Market Economy Explain the statement "

    Explain the statement "Hypothes is the basic short run and long run behaviors of the airline industry in a market economy".

  • Q : List Which of the following lists

    Which of the following lists includes only capital resources (and ther Which of the following lists includes only capital resources (and therefore no labor or land resources)?

  • Q : Agency function of Commercial Bank Name

    Name the six agency function of Commercial Bank. Answer: A) Transfer of funds B) Collection of funds C) Purchase and sale of securities. D) Collection of dividends E) Payment of bills &

  • Q : Principles of macroeconomics Explain

    Explain the concept of “economies of scale” and “increasing returns”.

  • Q : Money-just another good ‘What occurs in

    ‘What occurs in the money market when there is a raise in income?’

  • Q : Supply use two market diagrams to

    use two market diagrams to explain how an increase in state subsidies to public colleges might affect tuition and enrollments in both public and private colleges?

  • Q : Crisis in Japan & US Question: What can

    Question: What can we learn from the Japanese experience? Is the US headed for a 'lost decade? Answer: There was a similari