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State Whether the Following Statement is True Or False with Reason: Autonomous Consumption Expenditure Cannot Be Zero. - Economics

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Question

State whether the following statement is True or False with reason:    

Autonomous consumption expenditure cannot be zero.

Solution

True. autonomous consumption expenditure cannot be zero.
Explanation:
Autonomous consumption expenditure is the minimum expenditure which takes place irrespective of the income. In other words, it is the basic consumption of individuals when the level of income is zero. Such expenditure cannot be zero.

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2012-2013 (March)

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