Study of Consumption
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Question (English)
The study of how a consumer decides what to buy given his income and prices is called the study of:
- Production
- Distribution
- Consumption ✓ Correct
- Statistics
Explanation:
Correct Answer Explanation
The study of Consumption is about how the consumer decides, given his income and many alternative goods to choose from, what to buy when he knows the prices.
Key Points:
- Consumer has limited income but many alternative goods.
- Prices of goods influence buying decisions.
- Purchase of goods by consumers to satisfy needs is Consumption.
Why Other Options Are Wrong
- A (Production): Concerns what and how to produce.
- B (Distribution): Concerns how income is divided.
- D (Statistics): A tool used in economics.
📚 About this Topic — CH-1: Introduction
This multiple choice question is from CH-1: Introduction, NCERT Books, Statistics for Economics. It has 4 options with a detailed explanation of the correct answer. Practice more MCQs from CH-1: Introduction to strengthen your preparation.
