Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Macro Economics: Determination of Income and Employment

Question:

Match List I with List II

List I List II
A. Ex-ante saving I. Actual Saving
B. Ex-post consumption II. Planned Consumption
C. Ex-ante consumption III. Planned Saving
D. Ex-post saving IV. Actual Consumption

Choose the correct answer from the options given below :

Options:

A-I, B-III, C-IV, D-I

A-I, B-IV, C-II, D-III

A-II, B-I, C-IV, D-III

A-III, B-IV, C-II, D-I

Correct Answer:

A-III, B-IV, C-II, D-I

Explanation:

The correct answer is option (4) : A-III, B-IV, C-II, D-I

"Ex ante" and "ex post" are terms used in economics to differentiate between planned or anticipated values (ex ante) and actual realized values (ex post). These concepts are often applied to saving and consumption.

1. Ex Ante Saving and Consumption: Ex Ante Saving refers to planned or intended saving before any changes in economic variables occur. It's what individuals or households plan to save based on their expectations and intentions. Ex Ante Consumption is the planned or intended level of consumption before any changes in economic variables. It's what individuals or households plan to consume based on their expectations.

2. Ex Post Saving and Consumption: Ex Post Saving refers to the actual saving that occurs after changes in economic variables have taken place. It reflects the realized saving after accounting for any differences between planned and actual saving. Ex post consumption is the actual level of consumption that takes place after changes in economic variables. It reflects the realized consumption after accounting for any differences between planned and actual consumption.

List I List II
A. Ex-ante saving III.Planned Saving
B. Ex-post consumption IV.Actual Consumption
C. Ex-ante consumption II.Planned Consumption
D. Ex-post saving I.Actual Saving