Option 1 -> When consumption exceeds income, APC = C/Y results in a value greater than 1.
Option 2 -> This occurs when income exceeds consumption, resulting in APC < 1.
Option 3 -> APC cannot be negative as both consumption and income are positive values.
Option 4 -> APC equals zero only when consumption is zero, which is unrealistic.
Hence, Option 1: More than 1 -> Average Propensity to Consume (APC) is calculated as Consumption/Income. When income is less than consumption (C > Y), the numerator becomes larger than the denominator, making APC > 1. This situation occurs during dissaving, where individuals spend more than their current income by either using past savings or borrowing. For example, if consumption is ₹1200 and income is ₹1000, then APC = 1200/1000 = 1.2, which is greater than 1 -> correct