Share
Notifications

View all notifications

State Whether the Following Statement is True Or False with Reason: Autonomous Consumption Expenditure Cannot Be Zero. - Economics

Login
Create free account


      Forgot password?

Question

State whether the following statement is True or False with reason:    

Autonomous consumption expenditure cannot be zero.

Solution

True. autonomous consumption expenditure cannot be zero.
Explanation:
Autonomous consumption expenditure is the minimum expenditure which takes place irrespective of the income. In other words, it is the basic consumption of individuals when the level of income is zero. Such expenditure cannot be zero.

  Is there an error in this question or solution?

APPEARS IN

 2012-2013 (March) (with solutions)
Question 2.2.5 | 2.00 marks
Solution State Whether the Following Statement is True Or False with Reason: Autonomous Consumption Expenditure Cannot Be Zero. Concept: Taxable Income.
S
View in app×