Question : When income level is zero, the consumption is ___________.
Option 1: Positive
Option 2: Negative
Option 3: Zero
Option 4: None of the above.
Correct Answer: Positive
Solution : There is always some minimum level of consumption even when the income is zero. It happens because people need certain basic goods and services to sustain themselves. Hence, Option A is correct.
Question : Net earnings is ___, when receipts from exports are more than payments for imports.
Option 1: Negative
Option 2: Zero
Option 3: Positive
Question : Net earnings is ___, when receipts from exports are equal to payments for imports.
Question : Net earnings is ___, when receipts from exports are less than payments for imports.
Question : Aggregate supply = ________________
Option 1: Consumption
Option 2: National income
Option 3: Both of the above.
Question : Consumption at zero level of income is called ____________________.
Option 1: Autonomous consumption
Option 2: Consumption
Option 3: Average consumption
Option 4: Marginal consumption
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