Autonomous Consumption Is Equal to

question 36

Multiple Choice

Autonomous consumption is equal to

• A) consumption caused by an increase in disposable income.
• B) saving when consumption equals disposable income.
• C) dissaving when disposable income is greater than zero.
• D) consumption when disposable income is zero.

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Definitions:

Special Order

A special order refers to a one-time order that is not part of the regular, ongoing business operations and usually requires consideration of additional costs and pricing.

Capacity

The maximum level of output that a company can sustain to make a product or provide a service.

Sales Price

The amount of money charged for a product or service, which can vary based on demand, market conditions, and production costs.

Production Cost

The total cost incurred by a business to produce goods or services, including labor, materials, and overhead.