Consumption (economics)
hideConsumption is a common concept in economics, and gives rise to derived concepts such as consumer debt. Generally consumption is defined by opposition to production. But the precise definition can vary because different schools of economists define production quite differently. According to some economists, only the final purchase of goods and services constitutes consumption, and every other commercial activity is some form of production. Other economists define consumption much more broadly, as the aggregate of all economic activity that does not entail the design, production and marketing of goods and services (e.g. "the selection, adoption, use, disposal and recycling of goods and services").
Likewise, consumption can be measured by a variety of different metrics such as energy in energy economics . The total consumer spending in an economy is generally calculated using the consumption function, a metric devised by John Maynard Keynes, which simply takes the aggregate disposable income and multiplies it by a "marginal propensity to consume". This metric essentially defines consumption as the part of disposable income that does not go into savings. But disposable income in turn can be defined in a number of ways - e.g. to include borrowed funds or expenditures from savings.
For more information about Consumption (economics), read the full article at
Wikipedia.
This text uses material from Wikipedia and is available under the GNU Free Documentation License.
News tagged with spending
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Top Japanese scientists, including four Nobel laureates, have criticised the new government for plans to slash research budgets, warning the country will loose its high-tech edge.
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Diabetes cases to double and costs to triple by 2034
Nov 27, 2009 |
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In the next 25 years, the number of Americans living with diabetes will nearly double, increasing from 23.7 million in 2009 to 44.1 million in 2034. Over the same period, spending on diabetes will almost triple, rising from ...
Holiday shopping off to mildly encouraging start
3 hours ago |
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(AP) -- After shoppers gave retailers a somewhat encouraging start to the holiday shopping season, stores now turn their attention to the online promotions known as Cyber Monday and bringing back customers ...
Retailers look to stretch out Cyber Monday push
Nov 23, 2009 |
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(AP) -- Retailers are thinking beyond Cyber Monday - a holiday marketing promotion many push for the Monday after Thanksgiving - and trying to spin their discounts into into Cyber Weekends or even Cyber Weeks.
Message gone viral? Blame it on altruistic, yet image-conscious Internet 'e-mavens'
Nov 26, 2009 |
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(PhysOrg.com) -- Why do some online ad campaigns go viral while other online marketing messages gather "cyber-dust" on the information superhighway? The key may lie in the motivation of Internet users to email ...
Study reveals people’s thoughts on living longer
59 minutes ago |
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(PhysOrg.com) -- If people were given a pill to make them live longer what would they do with that extra time? According to a new study by University of Queensland researchers, they would spend it with their family.
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Nov 25, 2009 |
3.8 / 5 (9) |
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(AP) -- New cars have been tuning themselves for the better part of two decades now, so it should feel less impressive that Gibson has built a guitar that can smoothly do the same.
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HP profit jumps on cost cuts, new market expansion
Nov 23, 2009 |
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(AP) -- Hewlett-Packard Co.'s cost-cutting and push into new markets is helping soften the blow from weakness in the company's mainstay businesses.
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Osteoarthritis (OA), a highly prevalent disease, raised aggregate annual medical care expenditures in the U.S. by $185.5 billion according to researchers from Stony Brook University. Insurers footed $149.4 billion of the ...
Should I buy a PC or Mac?
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