Question

14. Define consumption. What are its main forms?
15. Explain briefy the basic units of economic analysis.
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Answer 1

Answer:

14.Consumption is defined as the use of goods and services by a household. It is a component in the calculation of the Gross Domestic Product (GDP). Gross Domestic Product (GDP)Gross domestic product (GDP) is a standard measure of a country's economic health and an indicator of its standard of living.

15.In an economy, production, consumption and exchange are carried out by three basic economic units: the firm, the household, and the government. Firms make production decisions. These include what goods to produce, how these goods are to be produced and what prices to charge.