ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -consumer debt (=money people owe because they buy too much)the growth in consumer debta consumer boom (=a time when people spend a lot more money on buying things than usual)the consumer boom of the 1980s in Britainadjectivesthe biggest/largest consumer of somethingThe US is the world’s biggest oil consumer.

Detailed explanation-2: -According to the BLS survey, the largest expenditures were housing and transportation, which comprised 26 percent and 13 percent of people’s take-home pay, respectively. Another big spending category was food, to which 10 percent was devoted.

Detailed explanation-3: -Consumer spending makes up more than 70 percent of the economy, and it usually drives growth during economic recoveries.” Every quarter, when the government releases its latest GDP figures, we hear the familiar refrain: “What the consumer does is vital for economic growth.”

Detailed explanation-4: -If consumers spend too much of their income now, future economic growth could be compromised because of insufficient savings and investment. Consumer spending is, naturally, very important to businesses. The more money consumers spend at a given company, the better that company tends to perform.