Question

Autonomous consumption means ______.

Options

• minimum level of consumption which must be incurred even at the zero level of income.

• when C = Y

• C > Y

• none of these

Answer 1

Autonomous consumption means minimum level of consumption which must be incurred even at the zero level of income.

Explanation:

Autonomous consumption refers to essential spending that happens regardless of income level, including when income is zero. It represents basic consumption needs like food, shelter, etc.