How to get people to pay their taxes, according to research

Government officials can do the math and figure out how much taxation they need to cover everything from military defense to bridges, education and Medicare. The snag, as it's been for millennia, comes when they try to get ...

COVID-19 lockdowns reduced disease spread, but with costs

The lockdowns at the beginning of COVID-19 pandemic reduced the spread of infection by an estimated 56%, a recent study has found. If all governors did not issue any lockdowns until April 23, 2020, the number of cases would ...

Surveys reveals five patterns in consumer responses to inflation

People are scaling back their spending habits and changing attitudes toward saving and borrowing after a year and a half of high inflation, according to a special report from the University of Michigan's Surveys of Consumers.

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Consumption (economics)

Consumption is a common concept in economics, and gives rise to derived concepts such as consumer debt. Generally consumption is defined by opposition to production. But the precise definition can vary because different schools of economists define production quite differently. According to some economists, only the final purchase of goods and services constitutes consumption, and every other commercial activity is some form of production. 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").

Likewise, consumption can be measured by a variety of different metrics such as energy in energy economics . The total consumer spending in an economy is generally calculated using the consumption function, a metric devised by John Maynard Keynes, which simply takes the aggregate disposable income and multiplies it by a "marginal propensity to consume". This metric essentially defines consumption as the part of disposable income that does not go into savings. But disposable income in turn can be defined in a number of ways - e.g. to include borrowed funds or expenditures from savings.

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