The 'average propensity to save' is calculated as: MCQ with Answer and Explanation

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The 'average propensity to save' is calculated as:

A. income divided by saving

B. change in saving divided by change in income

C. consumption divided by income

D. saving divided by income

Answer: Option D

Solution (By JKSSB Mock Tests)

APS is total saving divided by total income.

This question belongs to: Economy GK Economy Set 1

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Question #1

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Which of the following is not a determinant of money demand in Keynesian theory?

A. Precautionary motive

B. Depreciation motive

C. Speculative motive

D. Transactions motive

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Correct Answer: Option B

Explanation:
Keynes identified transactions, precautionary and speculative motives for holding money, not depreciation motive.

This question belongs to: Economy GK Economy Set 1

Question #2

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The 'Union Budget' is presented under which article of the Constitution?

A. Article 110

B. Article 280

C. Article 112

D. Article 265

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Correct Answer: Option C

Explanation:
The Annual Financial Statement is presented under Article 112.

This question belongs to: Economy GK Economy Set 1

Question #3

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The 'Phillips curve' shows trade-off between:

A. unemployment and growth

B. interest rates and inflation

C. inflation and unemployment

D. inflation and growth

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Correct Answer: Option C

Explanation:
Phillips curve shows inverse relationship between inflation and unemployment.

This question belongs to: Economy GK Economy Set 1

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