ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Consumer spending is the total money spent on final goods and services by individuals and households for personal use and enjoyment in an economy.

Detailed explanation-2: -Household final consumption expenditure is the market value of all goods and services, including durable products (such as cars, washing machines, and home computers), purchased by households. It excludes purchases of dwellings but includes imputed rent for owner-occupied dwellings.

Detailed explanation-3: -First, consumption expenditure increases as income does. For every increase in income, consumption increases by the MPC times that increase in income. Thus, the slope of the consumption function is the MPC. Second, at low levels of income, consumption is greater than income.

Detailed explanation-4: -consumption, in economics, the use of goods and services by households. Consumption is distinct from consumption expenditure, which is the purchase of goods and services for use by households.

Detailed explanation-5: -Consumption is defined as the use of goods and services by a household. It is a component in the calculation of the Gross Domestic Product (GDP). Macroeconomists typically use consumption as a proxy of the overall economy.