Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Macro Economics: Determination of Income and Employment

Question:

Which of the following denotes the consumption of basic necessities of life in the consumption function?

Options:

Ex-post consumption

Ex-ante consumption

Continuous consumption

Autonomous consumption 

Correct Answer:

Autonomous consumption 

Explanation:

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.