Question

State the various types of consumption.

Answer 1

The various types of consumption are classified as follows:

1. Based on the type of consumer goods:

• Single Use Consumer Goods
• Durable Consumer Goods
• Services

2. Based on who incurs the consumption expenditure:

• Private Consumption Expenditure: This refers to the expenditure incurred by private individuals on single use consumer goods, durable consumer goods, and services.
• Public Consumption Expenditure: Also known as Government Consumption Expenditure, this includes consumer goods and services provided by the government, such as health, education, railways, roads, which are often provided free of cost to consumers.