SUBJECT: ECONOMICS

CLASS: XII
Numericals
(Theory of Income and Employment)
Q1. If disposable income is ₹ 500 and consumption expenditure is ₹ 300, calculate APC and
APS.

Q2. From the following data, calculate MPC.

Income (₹) Saving (₹)
2,000 500
2,500 700

Q3. If APC of an economy is 0.8, what should be saving at an income level of ₹ 2,000 crores?
Q4. Complete the following table:
Income (Y) Saving (S) MPC = ∆𝑪 / ∆𝒀 APS = S / Y
(₹) (₹)
0 -12 - -
20 -6 - -
40 0 - -
60 6 - -

Q5. Complete the following table:

Income (Y) Consumption (C) MPC = ∆𝑪 / ∆𝒀 APS = S / Y
(₹) (₹)
0 40 - -
50 70 - -
100 100 - -
150 120 - -

Q6. On the basis of consumption function: C = 120 + 0.40Y; answer the following questions:
(i) Derive the saving function.
(ii) Determine the saving at the income level of ₹ 500 crores.
(iii) At what level of income, saving becomes zero?

Q7. In an economy, S = -100 + 0.25Y is the saving-function (where S = Saving , and Y= National
income) and investment expenditure is ₹ 8,000. Calculate:
(i) Equilibrium level of national income,
(ii) Saving at equilibrium level of national income, and
(iii) Consumption expenditure at equilibrium level of national income.
Q8. The economy is in equilibrium. Find national income from the following data:
Autonomous consumption = ₹ 100
MPC = 0.80
Investment = ₹ 50

Q9. Find consumption expenditure from the following data:

Autonomous consumption = ₹ 100
MPC = 0.70
National Income = ₹ 1,000 crores

Q10. Find investment from the following data if the economy is in equilibrium:
National income = ₹ 600
Autonomous consumption = ₹ 150
MPC = 0.70

Q11. In an economy, S = -100 + 0.6Y is the saving function, where S is saving Y is National
Income. If investment is ₹ 100, calculate:
(i) Equilibrium level of national income.
(ii) Consumption expenditure at equilibrium level of NI.

Q12.Given consumption-function C = 150 + 0.80Y (where C = Consumption expenditure and Y =

national income) and investment expenditure = ₹ 2000, calculate:
(i) Equilibrium level of national income,
(ii) Consumption expenditure at equilibrium level of national income.

Q13. An economy is in equilibrium. From the following data about an economy calculate
autonomous consumption:
(i) Income = 5000
(iI) Marginal propensity to save = 0.2.
(iii) Investment expenditure = 800

Q14. Calculate MPC from the following data about an economy which is in equilibrium:
National Income = 2000,
Investment expenditure = 100,
Autonomous consumption expenditure = 200.

Q15. An economy is in equilibrium. From the following data, calculate MPS.

(i) Income = 10,000
(ii) Autonomous consumption = 500
(iii) Consumption expenditure = 8’000

Q16. From the data given below about an economy calculate: (a) Investment expenditure (b)
Consumption expenditure
(i) Equilibrium level of income 5000
(ii) Autonomous consumption 500
(iii) Marginal Propensity to consume 0.4

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