Consumption (economics)
Consumption is the act of using resources to satisfy current needs & wants. it is for seen in contrast to investing, which is spending for acquisition of future income. Consumption is a major concept in economics as alive as is also studied in many other social sciences.
Different schools of economists define consumption differently. According to mainstream economists, only thepurchase of newly produced goods & services by individuals for immediate use constitutes consumption, while other brand of expenditure — in particular, fixed investment, intermediate consumption, and government spending — are placed in separate categories see Consumer choice. 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.
Economists are especially interested in the relationship between consumption and income, as modelled with the consumption function. A similar realist structural theory can be found in consumption theory, which views the Fisherian intertemporal alternative expediency example as the real cut of the consumption function. Unlike the passive strategy of profile embodied in inductive structural realism, economists define structure in terms of its invariance under intervention.