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.
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News tagged with spending
Is Second Life's Economy Too Big To Fail?
Oct 13, 2009 |
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One of the more interesting developments in terms of technology is the virtual economy -- and how it translates into something that involves real money.
Fatal (fiscal) attraction: Tightwads and spendthrifts tend to marry (w/ Video)
Other Sciences / Social Sciences
Aug 27, 2009 |
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(PhysOrg.com) -- When it comes to love and money, opposites really do attract, says a University of Michigan researcher.
US tops world in health care spending, results lag
Dec 08, 2009 |
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(AP) -- The United States ranks near the bottom in life expectancy among wealthy nations despite spending more than double per person on health care than the industrialized world's average, an economic group said Tuesday.
Gartner: Tech spending will rebound in 2010
Oct 19, 2009 |
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(AP) -- Research group Gartner Inc. says the information technology industry is closing its worst year on record, with worldwide tech spending on track to decline 5.2 percent in 2009.
Candy bar or healthy snack? Free choice not as free as we think
Other Sciences / Social Sciences
Oct 13, 2009 |
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If you think choosing between a candy bar and healthy snack is totally a matter of free will, think again. A new study in the Journal of Consumer Research shows that the choices we make to indulge ourselves or exercise self-c ...
Swine flu could wreak more havoc on US economy, says economist (w/ Video)
Sep 23, 2009 |
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H1N1 influenza could slow growth in key industries and stall already-weak GDP growth in the third and fourth quarters of 2009, says a health economist in the University of Alabama at Birmingham (UAB) School of Business.
Sluggish PC, ink sales hurt HP; results still beat
Aug 18, 2009 |
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(AP) -- Hewlett-Packard Co.'s 19 percent drop in quarterly profit shows that the company still relies heavily on printer ink and the troubled personal computer market, despite the aggressive transformation ...
Big tech earnings week will reveal economic trends
Jul 18, 2009 |
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(AP) -- The technology sector is often talked about as if it were a unified front, an easy-to-define monolith. People say technology stocks rose or technology stocks fell. Tech helped drive a huge boom in the 1990s, and ...
Gartner says tech spending to drop 6 percent
Jul 07, 2009 |
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(AP) -- Research firm Gartner says worldwide spending on technology products and services is on track to decline 6 percent this year.
Nintendo's annual profit rises 8.5 percent
May 07, 2009 |
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(AP) -- Nintendo Co. reported an 8.5 percent rise in annual profit as the video game maker shrugged off the global slowdown that has battered other Japanese manufacturers.
Campaign spending affects electoral outcomes
Mar 18, 2009 |
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In Canada, campaign spending limits for candidates during a federal election are stipulated by the Canada Elections Act. A study recently published in the Canadian Journal of Economics uses these spending limits to evalua ...
Japan scientists attack govt research cut plans
Nov 26, 2009 |
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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.
New research may help to reduce global supply chain disruptions
Nov 06, 2009 |
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(PhysOrg.com) -- With consumer spending dwindling over the past couple months, retailers are hoping to see it increase with the holiday shopping season. In order to seize the opportunity and boost sales, retailers need to ...
Health care dispute: Costs of defensive medicine
Nov 04, 2009 |
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(AP) -- Dr. James Wang says he tries to tell his patients when extra medical procedures aren't necessary. If they insist, though, he will do it - not so much to protect their health as his own practice.
Lessons for Obama in study of Bush efforts to 'frame' Iraq war
Sep 17, 2009 |
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Wartime leaders have long sought to sway public opinion by "framing" bad news from the frontlines. They present inconvenient facts in an altered format in order to generate support for their policies. A new study from North ...
