Identify, what does the shaded area (AEFG), in the given figure indicate?

CBSE Economics class 12 question and answer | Identify, what does the shaded area (AEFG), in the given figure indicate?

cbse

Identify, what does the shaded area (AEFG), in the given figure indicate?

 

I. Consumption > Income
II. Saving = Zero (0)
III. Consumption < Income
IV. Saving < Zero (0)

Alternatives:
(A) I and Il
(B) II and III
(C) III and N
(D) I and IV

Ans. The shaded area (AEFG) in the given figure indicates that consumption is exceeding income, which implies that savings are negative (i.e., saving < 0). So, the correct alternative is: (D) I and IV