Question

What is meant by consumption?

Answer 1

Answer:

        The meaning of consumption means using, eating something. In this process, substance is fully used or destroyed. Consumption includes the part which deals with requirement and their satisfaction. Its function is matter between consumer and some factors.

                           Example of consumption is like when a  girl is having snacks. In economics, using something and domestic services.

Answer 2

Consumption:

• Consumption is the process that represents the final usage of the product or service. It is considered to be the final step of the economic activity.
• The central measure of productive success of an economy is the final consumption level per person in the given area.
• The study of consumption is more prominent in microeconomics and macroeconomics.
• The aggregate consumption represents the aggregate savings (as savings is that portion of income that is not consumed).
• The goods are planned and produced in any specific area based on the consumption rate of that area.