Answer:
The difference between autonomous expenditure and induced expenditure is as follows:
The autonomous expenditure is incurred even without a disposable income. The expenditure is incurred to provide basic necessities of life. In such a situation, the person spends from savings account or borrows to ensure that the basic necessities are provided.
On the other hand, induced expenditure is a disposable income-based expenditure. This implies that when disposable income rises, induced expenditure also rises, and vice versa. Induced expenditure is usually incurred to fund normal goods and services and not necessities. Without disposable income, there is no induced expenditure.
All the four sectors of the economy engage in these expenditures. The public (government) and household sectors are mostly affected. However, even the business and non-profit sectors are also affected by these types of expenditure.
Explanation:
We can distinguish between two types of aggregate expenditure. The first one is autonomous aggregate expenditure, which does not vary with the level of real GDP while induced aggregate expenditure varies with real GDP.
Answer:
The correct answer is letter "B": Indirect materials.
Explanation:
Indirect materials are useful for the production process of a good but that cannot be traced. Normally, these types of materials are used in small amounts. Examples of indirect materials are oil, glue, tape, fittings and fasteners, and cleaning supplies.
Answer: Option (C) is correct.
Explanation:
Elasticity measures the responsiveness of percentage change in quantity demanded from percentage change in price.
Elasticity =
Types of elasticity:
(1) Perfectly elastic
(2) Inelastic
(3) Unitary elastic
(4) Less elastic
(5) More elastic
c. mixed market
Explanation:
Comumis exhibits all the characteristics of mixed market system