If the marginal propensity to save is 0.25, then the marginal propensity to consume is: MCQ with Answer and Explanation

Question
If the marginal propensity to save is 0.25, then the marginal propensity to consume is:
A. 0.25
B. 0.75
C. 0.50
D. 1.25
Answer: Option B
Solution (By JKSSB Mock Tests)
MPC + MPS = 1, so MPC = 1 - 0.25 = 0.75.
This question belongs to: Economy GK Economy Set 1
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Question #1
The SARFAESI Act, 2002 primarily deals with:
A. payment systems
B. recovery of non-performing assets and securitization
C. microfinance regulation
D. bank nationalization
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Correct Answer: Option B

Explanation:
SARFAESI Act enables banks and financial institutions to recover non-performing assets.
This question belongs to: Economy GK Economy Set 1
Question #2
In the context of Indian agriculture, the term 'Minimum Support Price' is recommended by:
A. NITI Aayog
B. Food Corporation of India
C. Commission for Agricultural Costs and Prices
D. Reserve Bank of India
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Correct Answer: Option C

Explanation:
The Commission for Agricultural Costs and Prices (CACP) recommends Minimum Support Prices for various crops, which are then approved by the government.
This question belongs to: Economy GK Economy Set 1
Question #3
Which of the following is NOT a determinant of aggregate demand?
A. Technology level
B. Government expenditure
C. Consumption expenditure
D. Investment expenditure
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Correct Answer: Option A

Explanation:
Technology primarily affects aggregate supply. Aggregate demand is determined by consumption, investment, government spending and net exports.
This question belongs to: Economy GK Economy Set 1
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