Economics · Macroeconomics
A household plans to consume 400 when disposable income is 500, 480 when it is 600, and 560 when it is 700. Consider the following statements based on this data: I. MPC is 0.8 and APC is decreasing. II. MPC is 0.8; APC is 0.80 when income is 500, 0.80 when income is 600, and 0.80 when income is 700. III. MPC and APC are equal at all levels of income. IV. MPC is 0.8 and APC is also 0.8 for all levels of income. Choose the correct option containing the right statements:
Verified Solution4 OptionsUpdated: October 2026👁️1 View
Share:
- 1Only III
- 2Only I
- 3I and II
- 4III and IV✓
Correct answer
III and IV
Download Single Question PDF
Save this question and verified answer as a clean study sheet with live clickable link.
👥
Share with Friends & Study Groups
Challenge your peer aspirants on WhatsApp or Telegram to solve this question!
Online Test Series
Preparing for Economics?
Practice full-length Economics mock tests with real exam timers, instant score analysis, and all-India ranking.
Chapter Practice
Practice Macroeconomics MCQs →Want more practice questions on Macroeconomics?
Solve complete topic-wise tests with detailed solutions on GkGet.
Related Practice Questions
Recommended practice questions in Economics · Macroeconomics