Question

Autonomous investment is generally made by the __________ with a view to provide public utilities and to maximise social welfare.

• A. government
• B. private firms
• C. individuals
• D. none of the above

Answer 1

The correct option is A government

Autonomous investment refers to that investment which is independent of the level of income in the economy. It refers to the type of investment which is not affected by a change in the level of income in the economy. This type of investment is usually affected by government policy like tax revenue and expenditure on infrastructure etc. in order to provide public utilities and to maximize social welfare in the economy.