© examsnet.com
Question : 5
Total: 21
'Consumption function curve of an involuntary unemployed workers starts from some positive level on Y-axis even at zero level of Income'. Justify the given statement.
Solution:
This statement is true because consumption can never be zero even if income is zero as some minimum level of consumption has to be maintained for survival. Such subsistence consumption is called autonomous consumption.
© examsnet.com
Go to Question: