Question : Which of the following statement are true?
- In a two sector economy, if consumption is equal to income, average propensity to save will be zero.
- In a two sector economy if income is zero consumption will also be zero.
Option 1: Both are true.
Option 2: Both are false.
Option 3: Statement 1 is true, statement 2 is false.
Option 4: Statement 1 is false, statement 2 is true.
Answer (1)
23rd Jan, 2024
Correct Answer:
Statement 1 is true, statement 2 is false.
Solution :
If consumption in income and equal savings will be zero.
Even at zero income levels there is some minimum consumption also known as autonomous consumption.
Hence, Option C is correct.
Comments (0)
Related Questions
Trending Articles/News
