Concepts Of Consumption, Investment, And Savings Jamb Economics Past Questions
Question 1
If aggregate income is N500.00 and aggregate consumption is N400.00, this means that the average propensity to consume is?
- A. 0.20
- B. 0.80
- C. 1.25
- D. 2.00
Question 2
An economy in which the whole income is not consumed is referred to as______
- A. Frugal economy
- B. Spend thrift economy
- C. Capitalist economy
- D. Mixed economy
Question 3
In the diagram III refers to the calculation of national income through the
- A. Income approach
- B. Government earnings approach
- C. Expenditure approach
- D. Output approach
- E. Flow of funds approach
Question 4
In the diagram I refers to the calculation of national income through the
- A. Expenditure approach
- B. Input - Output approach
- C. Flows of funds approach
- D. Income approach
- E. Output approach
Question 5
In the diagram, the marginal propensity to consume (MPC) is equal to
- A. \(\frac{RP}{TP}\)
- B. \(\frac{TP}{RP}\)
- C. \(\frac{RT}{RP}\)
- D. \(\frac{RT}{TP}\)
