Which of the following denotes the consumption of basic necessities of life in the consumption function? |
Ex-post consumption Ex-ante consumption Continuous consumption Autonomous consumption |
Autonomous consumption |
Autonomous consumption is defined as the expenditures that consumers must make even when they have no disposable income. Certain goods need to be purchased, regardless of how much income or money a consumer has in their possession at any given time. These are mainly the necessities of life including food, clothing, rent etc. |