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.
DEFINITION of 'Economy' The large set of inter-related economic production and consumption activities which aid in determining how scarce resources are allocated.
Consumption is a major concept in economics and is also studied by many other social sciences. Economists are particularly interested in the relationship between consumption and income, and therefore in economics the consumption function plays a major role. Different schools of economists define production and consumption differently. According to mainstream economists, only the final purchase of goods and services by individuals constitutes consumption, while other types of expenditure.
Consumption is a common concept in economics, and gives rise to derived concepts such as consumer debt. Generally, consumption is defined in part by comparison to production.
Definition of consumption: The process in which the substance of a thing is completely destroyed, used up, or incorporated or transformed into something else. Popular 'Economics, Politics, & Society' Terms. immediate family; dislocated worker; business; globalization; marginal benefit; revenue; product; elasticity of demand; economic system; external environment; Email; Print; Cite; Link.
Consumption (economics)
Consumption is a major concept in economics and is also studied by many other social sciences. Economists are particularly interested in the relationship between consumption and income, and therefore in economics the consumption function plays a major role.