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BASIC CONCEPTS – CONSUMPTION

CONSUMPTION Consumption means satisfaction of wants through commodities and services. ‚ÄúConsumption a is deliberate destruction of utility for satisfaction of wants” Consumption may be [a] Final consumption. [b] Wasteful consumption / extravagant consumption. [c] Indirect consumption- Consumption is the beginning

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Psychological law of consumption

Psychological law of consumption The main purpose of every economic activity, be it production or exchange, is consumption. It is consumption that motivates man to produce. All the production activity would come to a standstill, if there is no consumption.

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Posted in Econleaks Answers