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Identify, which of the… (Class 12 Economics 2026, Q6)

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EconomicsCBSE Class 12 · Board exam 2026, set 58/1/1 · 1 mark · MCQ

CBSE Class 12 Economics 2026: question 6

Set in the CBSE Class 12 board exam of 2026, paper 58/1/1, 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

Identify, which of the following is true at the Break Even level of Income. (Choose the correct option)

  1. (A)Slope of Consumption Curve = Slope of Saving Curve
  2. (B)Average Propensity to Consume (APC) = Average Propensity to Save (APS)
  3. (C)Slope of Saving Curve = Unity (1)
  4. (D)Average Propensity to Consume (APC) = Unity (1)

Source: official question paper from cbse.gov.in (PDF). See it in the full 2026 board paper, set 58/1/1.

Hints

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

Hint 1

What is saving at the break-even point?

Hint 2

Divide consumption by income when they are equal.

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. At the break-even level of income, consumption equals income (C = Y) and saving is zero.

  2. So APC = C/Y = 1 and APS = 0. (APC = APS would need both to be 0.5, which is not the break-even condition.) Option (D).

    1 mark

Answer: (D) Average Propensity to Consume (APC) = Unity (1)

Where the marks are

  • At break-even C = Y, so APC = 1 (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 paper2026 board paper, set 58/1/1: 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.