____________ consumption expenditure refers to the expenditure, which is independent of income.

Autonomous

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Induced

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Aggregate

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None of the above

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Solution

The correct option is C Autonomous
Autonomous consumption refers to that consumption which occurs when there is no income in the economy. It is the minimum level of consumption that takes place in the economy. It is the consumption expenditure which is not affected by the income in the economy.

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Similar questions

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. From the following data about an economy, calculate: (a) Equilibrium level of national income; and (b) Total consumption expenditure at equilibrium level of national income.
(i) C =200 + 0.5 Y is the consumption function where C is consumption expenditure and Y is national income.
(ii) Investment expenditure is 1,500.

Q. From the data given below about an economy, calculate: (a) investment expenditure; and (b) consumption expenditure.
(i) Equilibrium level of income 5,000
(ii) Autonomous consumption 500
(iii) Marginal propensity to consume. 0.4

Q. An economy is in equilibrium. From the following data. calculate the marginal propensity to save :
(a) Income

= 10, 000

(b) Autonomous consumption

= 500

= 8, 000

Following is the break up of the expenditure of a family on different items of consumption:
$\begin{matrix} Items & Food & Clothing & Rent & Education & Fuel etc. & Medicine & Miscellaneous Expenditure (in Rs) & 1600 & 200 & 600 & 150 & 100 & 80 & 270 \end{matrix}$
Draw a pie - diagram to represent the above data.

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____________ consumption expenditure refers to the expenditure, which is independent of income.

The correct option is C AutonomousAutonomous consumption refers to that consumption which occurs when there is no income in the economy. It is the minimum level of consumption that takes place in the economy. It is the consumption expenditure which is not affected by the income in the economy.

The correct option is C Autonomous
Autonomous consumption refers to that consumption which occurs when there is no income in the economy. It is the minimum level of consumption that takes place in the economy. It is the consumption expenditure which is not affected by the income in the economy.