Question : Consumption at zero level of income is called ____________________.
Option 1: Autonomous consumption
Option 2: Consumption
Option 3: Average consumption
Option 4: Marginal consumption
Correct Answer: Autonomous consumption
Solution : Consumption at zero level of income is called autonomous consumption. As income increase, consumption also increase. Hence, Option A is correct.
Question : When income level is zero, the consumption is ___________.
Question : Using the consumption function, Calculate consumption at income level of 2500 crore, if autonomous consumption is 100 crore and 40% of additional income is consumed.
Question : __________________________ refers to the consumption expenditure to the corresponding level of income.
Question : Using the consumption function, Calculate saving at income level of 2500 crore, if autonomous consumption is 200 crore and 60% of additional income is consumed.
Question : _____________________ is defined as ratio of change in consumption to change in total income
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