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In the question given below there are 2 statements marked as Assertion (A) and Reason (R). Choose the correct alternative from the following options. Assertion (A)- Average propensity to consume can never be zero. Reason (R)- Even at zero level of income there is a certain amount of consumption that takes place. |
Both (A) and (R) are true and (R) is the correct explanation. Both (A) and (R) are true but (R) is not the correct explanation of (A). (A) Is true but (R) is false. (A) Is false but (R) is true. |
Both (A) and (R) are true and (R) is the correct explanation. |
Average propensity to consume can never be zero. This is because consumption is never zero. Even at zero level of income, certain amount of consumption takes place which is called as autonomous consumption. For ex: basic necessities like food, clothing and shelter etc. |
