ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -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.

Detailed explanation-2: -Consumption goods are those goods that are used by the consumers and have no use in future. Capital goods are those goods that have a future use and are used for production of consumption goods. Purpose. Consumer goods are purchased in order to fulfill personal consumption needs.

Detailed explanation-3: -We require consumer goods and services to satisfy increasing human wants. But this increase in availability of consumer goods and services depends on the increased availability of producer goods and services.

Detailed explanation-4: -Consumption is one of the bigger concepts in economics and is extremely important because it helps determine the growth and success of the economy. Businesses can open up and offer all kinds of great products, but if we don’t purchase or consume their products, they won’t stay in business for very long!