Question

In the country, 60 per cent of the income has been devoted to consumption in the past year. If income is Rs 5000 crore, find out consumption?

• A. Rs 3000 crore.
• B. Rs 300 crore.
• C. Rs 6000 crore.
• D. Rs 600 crore.

Answer 1

Answer: (A)

Rs 3000 crore.

Here, APC = 60 percent, Y = 5,000

Since, APC = $\frac{C}{Y}$
$C=APC\times Y$

$C=0.6\times 5,000=\text{3000}.$

C = Rs. 3,000 crores