MyQuestionIcon

1

You visited us 1 times! Enjoying our articles? Unlock Full Access!

Ex Ante Consumption

Autonomous co...

Question

Autonomous consumption expenditure does not depend on income.

A

True

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses

B

False

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Open in App

Solution

The correct option is A True
Autonomous consumption is the minimum level of consumption or spending made by the consumer even if the consumer has no disposable income.
This spending is done for a persons basic necessities and therefore autonomous consumption.

Suggest Corrections

thumbs-up

0

Similar questions

Q. An economy is in equilibrium. Find autonomous consumption expenditure:
National Income = 1,600
Investment Expenditure = 300
Marginal Propensity to Consume =0.8
(Autonomous Consumption Expenditure = 20)

Q. Calculate autonomous consumption expenditure from the following date about an economy which is In equilibrium.
National income = Rs. 1,200
Marginal propensity to save = 0.20
Investment expenditure = Rs. 100
(Autonomous Consumption Expenditure = 140)

Q. Find consumption expenditure from the following: Autonomous consumption = Rs. 100; Marginal propensity to consume = 0.70; National Income = 1,000.

Q. Calculate consumption expenditure in the economy whose equilibrium level of income is 20,000, autonomous consumption is 500 and marginal propensity to save is 0.5.
(Consumption Expenditure a 10.500)

Q. An economy is in equilibrium. From the following data about an economy, calculate autonomous consumption.
Income = 5,000
Marginal Propensity to Save = 0.2
Investment Expenditure = 800
(Autonomous Consumption = 200)

View More

Join BYJU'S Learning Program

similar_icon

Related Videos

lock

Ex Ante Consumption

ECONOMICS

Watch in App

explore_more_icon

Explore more

Ex Ante Consumption

Standard XII Economics

Join BYJU'S Learning Program

CrossIcon