Question : Which of the following is an example of an autonomous expenditure?
Option 1: Interest payments on public debt
Option 2: Subsidies provided by the government
Option 3: Government purchases of goods and services
Option 4: Personal consumption expenditure
Correct Answer: Interest payments on public debt
Solution : The correct answer is (a) Interest payments on public debt.
Autonomous expenditures are those that are not directly influenced by changes in income or other economic variables. They are independent and tend to occur regardless of changes in the overall economic activity.
Interest payments on public debt are a fixed obligation for the government. They are typically determined by the terms of the debt contracts and the outstanding debt balance. Regardless of changes in income or economic conditions, the government is obligated to make interest payments on its public debt.
Question : Which of the following does not include in the national income?
Question : ____________ refers to the total expenditure incurred by households on purchase of goods and services during an accounting year.
Question : _____________________ is equal to the cost of goods and services produced by the collective used by the public.
Question : Which of the following is an incorrect statement concerning public goods?
Question : ____________ refers to the total expenditure incurred by government on consumer goods and capital goods to satisfy the common needs of the economy.
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