Macroeconomics - Consumption Theory

CONSUMPTION THEORY
 

To Fulfill the Task of Macroeconomics Subject

 

Lecturer :

 
Irvan Yoga Pardistya, SE., MM., Ak

 

Compiled By :

Lydia Nur Athifah
1610631030167

ACCOUNTING MAJOR
FACULTY OF ECONOMICS AND BUSINESS
UNIVERSITY OF SINGAPERBANGSA KARAWANG

September 2016

 

PREFACE

Alhamdulillah with permission of Allah SWT I can finish this assignment. Sorry if there is a mistakes and is not perfect, because perfection belongs only to Allah SWT.
Hopefully in the next assignment would be better than this and fix the mistakes earlier.

Karawang, 19th September 2016

Lydia Nur Athifah

Table of Contents

Preface
1. What is consumption theory?
2. Who are the actors?
3. Why is consumptions realted with income?
4. How can Income is major factors for consumptions?
References







1. What is consumption theory?
Consumption in economics, the use of goods and services by households. Consumption is distinct from consumption expenditure, which is the purchase of goods and services for use by house.

2. Who are the actors?

• Household
  As a consumer of goods and services to meet the needs of life
• Government
  Government in carrying out its functions in need of goods and services for consumption. Examples of goods and services required are office equipment (computers, desks, etc), office supplies (paper, ink, pencil, etc), official cars, home offices and equipment of war (tanks. Guns, and others).
• Company
  Purchase of production factors such as raw materials, labor, capital, and entrepreneur (enterpreneurship).
• Foreign
  In the economic activity of other countries have a role as a provider needs imported goods (supplier ) in the market for goods and purchase of exported products of our country.

3. Why is consumptions realted with income?
Because if income consumers high, then consumption is also high (both in number and in value) because it is related with fulfillment satisfaction of tge infinite. Conversely, if a person’s income is low, then consumption is relatively low because it deals with the desire to survive.

4. How can Income is major factors for consumptions?
Income is by far the must important factor that determines a community’s propensity to consume.
As its income rises or falls, consumption spending also rises and falls. The figures given afore show changes in consumption caused by an increase in income (with no change in the propensity to consume) and changes in consumption caused by a change in the propensity to consume (with no change in income).

REFERENCES

https://www.britannica.com/topic/consumption- on Friday, Sept. 16th 2016 (19.35) http://ekonomisku.blogspot.co.id/2015/02/peran-pelaku-ekonomi.html- on Saturday, Sept. 17th 2016 (09.50) http://www.pendidikanekonomi.com/2015/01/5-faktor-yang-mempengaruhi-tingkat.html- on Saturday, Sept. 2016 (09.55) http://www.economicsdiscussion.net/consumption-function/12-objective-factors-affecting-consumption-keynes-psychological-law/14469- on Saturday, Sept. 2016 (10.05) http://www.academia.edu/9420500/Pelaku_Ekonomi_Makro- on Sunday Sept 18th 2016 (20.58)