Assertion (A): Consumption is positive even when income is zero.
Reason (R): People need a minimum level of consumption to survive, and pay for it from past savings or borrowing.

Both A and R are true, and R is the correct explanation of A.Correct answerYour answerBoth A and R are true, but R is not the correct explanation of A.Correct answerYour answerA is true, but R is false.Correct answerYour answerA is false, but R is true.Correct answerYour answer

Show the answer and explanation

CorrectNot quiteAnswer A

Correct answer: A

This is autonomous consumption, c̄. R explains A.

Concept: Why autonomous consumption exists
Typical timeTypical: 70 s
Your timeYours: —

The rule this testsThe consumption function

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Assertion (A): Consumption is positive even when income is zero.Reason (R): People need a minimum level of consumption to survive, and pay for it from past savings or borrowing.

Explanation

Assertion (A): Consumption is positive even when income is zero.
Reason (R): People need a minimum level of consumption to survive, and pay for it from past savings or borrowing.