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- Consumption is important in economics because12:
- It is the beginning of all human economic activity. A man feels a desire and then he makes an effort to satisfy it.
- It is the end of all economic activities. If a person desires a sandwich, they will take the effort to make the sandwich.
- It drives production.
- It is an index of standard of living.
- It is the source of production.
- It is important in economic theory.
- It is important for the government.
Learn more:✕This summary was generated using AI based on multiple online sources. To view the original source information, use the "Learn more" links.Importance of Consumption
- 1. The beginning of all economic activity Consumption is the start of all human economic activity. ...
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- 1. Beginning of all Economic Activities: Consumption is the beginning of all human economic activities. A man feels a desire and then he makes an effort to satisfy it. ...
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Consumption is the act of using resources to satisfy current needs and wants. It is seen in contrast to investing, which is spending for acquisition of future income. Consumption is a major concept in economics and is also studied in many other social sciences.
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