Answer to Question #110274 in Microeconomics for Kwezi

Question

1. What is progressive tax
2. Consumption fuction
3. Autonomous consumption

Answer 1

1. What is progressive tax

It is tax where those earners getting a low income gets a low tax depending on their income compared to those who earn more. Those earning more tends to pay a larger tax compared to those with low income.

2. Consumption function

It is a formula that shows the relationship between the total consumption and the gross national income. It can be used to predict the consumption expenditures.

3. Autonomous consumption

It is the expenditure which the consumers must make regardless of the income. Some goods must be purchased even if at a low price or high price. Consumers need this goods in that they can even use their savings to purchase them.