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 Consumption I. Planned Saving
B. Ex-Ante Saving II. Actual Consumption
C. Ex-Post Investment III. Planned Consumption
D. Ex-Post Consumption IV. Realised investment

Choose the correct answer from the options given below :

Options:

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

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

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

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

Correct Answer:

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

Explanation:

The correct answer is option (2) : A-III, B-I, C-IV, D-II

A. Ex-Ante Consumption (III. Planned Consumption): "Ex-Ante" means "before the event." Planned consumption refers to the amount of consumption individuals or a nation intend to spend before the actual spending occurs.

B. Ex-Ante Saving (I. Planned Saving): Similar to A, "Ex-Ante" refers to planned actions. Planned saving is the amount of income individuals or a nation intend to save before the actual saving happens.

C. Ex-Post Investment (IV. Realised investment): "Ex-Post" means "after the event." Realised investment refers to the actual amount of investment that takes place after the planning stage.

D. Ex-Post Consumption (II. Actual Consumption): Following the "Ex-Post" meaning, actual consumption refers to the amount actually consumed after the planning stage.

List I List II
A. Ex-Ante Consumption III.Planned Consumption
B. Ex-Ante Saving I.Planned Saving
C. Ex-Post Investment IV.Realised investment
D. Ex-Post Consumption II.Actual Consumption