Relationship between the TR, MR and Demand Curves

Q.

Why Is PPC Concave?

Q. An increase in investment by Rs. 400 crores leads to increase in National Income by Rs. 1, 600 crores. Calculate marginal propensity to consume.

Q. What is required to derive the slope of the budget line?

1. Amount of price change in good 1 and good 2
2. Amount of quantity changed in good 1 and good 2
3. None of the above
4. Amount of income change

Q.

Q. As a result of increase in investment by Rs. 60 crore, national income rises by Rs. 240 crore. Calculate marginal propensity to consume.

Q. By increase in investment of Rs.100 cores, national income of a country increases by Rs. 250 crores. And out the marginal propensity to consume.

Q. Equilibrium means a situation where __________.

1. the plans of all consumers and firms in the market match and the market clears
2. the aggregate quantity that all firms wish to sell equals the quantity that all the consumers wish to buy
3. market supply equals market demand
4. all of the above

Q. In all forms of imperfect competition, the average revenue curve facing the individual slopes ___________.

1. upward
2. downward
3. horizontally
4. vertically

Q. An economy is in equilibrium. From the following data about an economy, calculate autonomous consumption.
Income = 5, 000
Marginal Propensity to Save = 0.2
Investment Expenditure = 800
(Autonomous Consumption = 200)