ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Household spending is the amount of final consumption expenditure made by resident households to meet their everyday needs, such as food, clothing, housing (rent), energy, transport, durable goods (notably cars), health costs, leisure, and miscellaneous services.

Detailed explanation-2: -The final consumption expenditure of households includes only the share of expenditure on health, education and housing, remaining to be paid by them, after possible reimbursements. The part which is reimbursed to them is included in the final consumption expenditure of the sector of general government.

Detailed explanation-3: -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-4: -The level of consumption that takes place in an economy at a given point depends upon the purchasing power of an economy which depends upon the net disposable income of an economy which in the income spend on consumption after adjusting savings from it.

Detailed explanation-5: -Household final consumption expenditure is typically the larg-est component of final uses of GDP, representing in general around 60% of GDP. It is therefore an essential variable for economic analysis of demand. An additional concept, (household) actual individual consumption, also exists in the SNA.