Consumption (economics) facts for kids

Kids Encyclopedia Facts

Consumption is a major concept from economics. Consumers spend their all their income. Some of this income is spent on buying the products and services they need - this is called consumption. John Maynard Keynes talked about consumer spending and a consumption function which expresses how households spend their income. Different schools of economics define this consumption function differently, but they agree on the basic mechanism how consumption works.

Consumption (economics) Facts for Kids. Kiddle Encyclopedia.