The part of consumption that is independent of disposable income is called
A) automatic consumption.
B) fixed consumption.
C) personal consumption.
D) autonomous consumption.

Question

Quizplus · Accepted Answer

Autonomous consumption refers to the part of consumption that is independent of disposable income. This can include basic needs like food, shelter, and clothing, as well as subjective factors like habits and preferences. Fixed consumption is usually used to refer to expenses that are fixed or relatively constant, such as rent or mortgage payments, whereas personal consumption is a more general term that encompasses all forms of consumption. Automatic consumption is not a commonly used term in economics.

The Part of Consumption That Is Independent of Disposable Income