Autonomous Expenditure Is Spending That Is

question 87

Multiple Choice

Autonomous expenditure is spending that is:

• A) depends on the level of income in the economy.
• B) that is determined by the government.
• C) not sensitive to the level of income in the economy.
• D) what is spent when income changes in the economy.

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Definitions:

Metal Alloy

A substance composed of two or more metals or a metal and a non-metal, mixed together to attain desired physical or chemical properties.

Fixed Proportions

A production technology assumption where inputs must be used in constant, unchanging ratios to produce outputs.

Average Cost

The total cost of production divided by the number of units produced, representing the cost per unit of output.

Production Function

An equation that specifies the output that can be produced with different combinations of inputs or factors of production.