Autonomous Consumption

question 192

Multiple Choice

Autonomous consumption

• A) is the same as the break-even point.
• B) gives the amount a person changes planned consumption for a change in real disposable income.
• C) is the amount of consumption that does not depend on the level of disposable income.
• D) is the amount total disposable income less planned consumption.

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Definitions:

Specialization

The process of focusing on a narrow area of expertise or production, enhancing efficiency and skill through the division of labor.

High Consumption-Low Investment

This term refers to an economic situation where a country or entity spends a significant portion of its income on consumption rather than investing in capital goods that could contribute to future growth.

High Investment-Low Consumption

An economic strategy or situation that focuses on higher levels of investment in capital and infrastructure while maintaining lower levels of consumer spending.

Marginal Benefit

The additional satisfaction or utility that an individual gains from consuming one more unit of a good or service.