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Economics · 2025 · 1 mark
CBSE 2025 · Region 4 · Set 1 · Q7
Read the following statements carefully: Statement 1: Marginal Propensity to Consume (MPC) refers to the consumption per unit of income. Statement 2:…
Read the following statements carefully :Statement $\displaystyle 1$ : Marginal Propensity to Consume (MPC) refers to the consumption per unit of income.Statement $\displaystyle 2$ : As the income increases, the proportionate increase in the level of consumption is always more than the increase in the level of income.In the light of the given statements, choose the correct option from the following :
Official answer
(D)
Both Statements $\displaystyle 1$ and $\displaystyle 2$ are false.
Marking-scheme solution
(D)
Both Statements $\displaystyle 1$ and $\displaystyle 2$ are false.
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CBSE Class 12 Economics past-paper question from the 2025 board exam, with the answer as CBSE’s own marking scheme gives it. Where our answers come from.