Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Macro Economics: Determination of Income and Employment

Question:

At break even point ( i.e ,C=Y) ,what would be the value of Average Propensity to Save (APS)?

Options:

zero

one

infinity

between 0 and 1

Correct Answer:

zero

Explanation:

At break even point i.e. Y=C we would be having zero savings as, Y=C+S and Y=C then S = 0.
APS= \(\frac{ S}{ Y}\)

APS= \(\frac{0 }{Y }\)

=0

Therefore, At breakeven point APS is 0.