Consumption (economics)

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Consumption refers to the use of resources to fulfill present needs and desires. It is seen in contrast to investing, which is spending for the acquisition of future income. Consumption is a major concept in economics and is also studied in many other social sciences. Different schools of economists define consumption differently. According to mainstream economists, only the final purchase of newly produced goods and services by individuals for immediate use constitutes consumption, while other types of expenditure – in particular, fixed investment, intermediate consumption, and government spending – are placed in separate categories (see consumer choice). Other economists define consumption 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 particularly interested in the relationship between consumption...

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