Question

(i) What is meant by depreciation?

(ii) What is meant by the monetary value of money?

(iii) Find the average propensity to consume (APC)if the national income is rupees 3 crores and consumption expenditure is rupees 5 crores.

(iv) Find the value of a multiplier if increase in autonomous investment of rupees10 crores in an economy results in increase in income by rupees 50crores?

(v) How can industrial growth increase employment opportunities? ​

Answer 1

Answer:

Depreciation refers to fall in the value of fixed assets due to wear and tear,expected obsolescence or passage of time

Monetary value is the amount that would be paid in cash for an asset or service if it were to be sold to a third party

APC=C/Y=5 CRORES/3CRORES=1.67

K=Change in income /change in investmemy=50/10=5

industrial growth would generate employment opportunities as growth means an increase in the output of goods and services produced . To increase the production of goods and services,more labour is required. Also, employment provided by industries is more stable than working in the primary sector

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