On what does the level of consumption in an economy depend most?
A)The needs of households.
B)The income level of households.
C)The level of savings.
D)The wants of households.

Question

Quizplus · Accepted Answer

The level of consumption in an economy depends mostly on the income level of households. Higher income levels typically result in higher levels of consumption, as individuals have more disposable income to spend on goods and services. While the needs and wants of households also play a role, they are ultimately constrained by income. Savings also play a role, but primarily in the context of investment and future consumption choices.

On What Does the Level of Consumption in an Economy