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Refer to the given… (Class 12 Economics SQP 2026-27, Q6)

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EconomicsCBSE Class 12 · Sample paper, session 2026-27 · 1 mark · MCQ

CBSE Class 12 Economics sample paper 2026-27: question 6

From the official CBSE sample question paper for 2026-27, section A, question 6, for 1 mark. Try it first; the hints and our step-by-step solution are below.

Q6 · 1 mark · MCQDetermination of Income and Employment

Refer to the given diagram carefully:
The slope of Consumption Curve would be ______. (Choose the correct option to fill up the blank)

  1. (A)1
  2. (B)0.8
  3. (C)0.25
  4. (D)0.75

Figure in the paper: Graph with Level of Income on X-axis and Aggregate Demand on Y-axis. A 45° line from origin, and two upward sloping lines AD = C + I and a higher parallel AD' = C + I + ΔI. The vertical gap ΔI = 20 is marked between AD and AD'; the horizontal change in income at the equilibrium points where the lines meet the 45° line is ΔY = 80. See it in the official paper.

Source: official sample paper from cbseacademic.nic.in (PDF). See it in the full Sample paper 2026-27.

Hints

Open one hint at a time and try again before the next.

Hint 1

Read ΔI and ΔY from the diagram.

Hint 2

Slope of the consumption curve = MPC.

Hint 3

K = 1/(1 − MPC).

Step-by-step solution

Each step shows the marks it earns, as an examiner would award them. Checked by an independent re-solve from the question paper.

  1. In the diagram, a rise in investment of ΔI = 20 raises equilibrium income by ΔY = 80, so the multiplier K = ΔY/ΔI = 80/20 = 4.

  2. K = 1/(1 − MPC), so 4 = 1/(1 − MPC) and MPC = 0.75. The slope of the consumption curve is the MPC = 0.75. Option (D).

    1 mark

Answer: (D) 0.75

Where the marks are

  • K = 4, so MPC (slope of C) = 0.75 (1 mark)

Revise the chapter

Practise this chapterBoard-style questions from Determination of Income and Employment, one at a time, marked against the answer key and marking points.Back to the full paperSample paper 2026-27: every question, by section.

The question is transcribed from the official paper; figures are described in words. The solution, hints and chapter tag are ours. Spotted an error? Write tosupport@questionbuddy.in.