Economics · National Income and Consumption
Assertion (A): The Average Propensity to Consume (APC) can never be zero while it can be greater than 1. Reason (R): Autonomous consumption expenditure is always positive even if the national income is zero. In the context of the above two statements, which of the following options is correct?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1(A) is false, but (R) is true.
- 2(A) is true, but (R) is false.
- 3Both (A) and (R) are true, but (R) is not the correct explanation of (A).
- 4Both (A) and (R) are true and (R) is the correct explanation of (A).✓
Correct answer
Both (A) and (R) are true and (R) is the correct explanation of (A).
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