Question

Average propensity to consume can never be

Answer 1

The value of Average Propensity to Consume(APC) can never be equal to zero.

Explanation:

In Economics,APC measures the level of consumption change for every 1 unit(in any currency) of income change including all sources and level of income.Now,conceptually,APC can never be equal to zero because even if consumption level will fall as the income level will decline,there will still be some level of consumption in the economy even if the income level falls to zero or there is practically no income.Even without any income,consumers or individuals would require at least some commodities or products for their regular sustenance such as food,shelter,clothing,items for daily or regular use and so forth.Hence,practically speaking consumption level will still be positive even if the income generation stops completely.