Final Consumption Expenditure by Households (Grade 11 NSC Matric Economics): Flashcards
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Final consumption expenditure
Final consumption expenditure
Money households spend on finished goods & services in a period
Purpose of tracking final consumption expenditure
Purpose of tracking final consumption expenditure
Helps understand & track changes in the business cycle
Signal of increased durable goods spending
Signal of increased durable goods spending
Economic upturn approaching
Durable goods definition
Durable goods definition
Physical items lasting more than one year
Semi-durable goods definition
Semi-durable goods definition
Physical items, shorter lifespan, replaced within a year
Non-durable goods definition
Non-durable goods definition
Items used up quickly or don't last very long
Services definition
Services definition
Activities/experiences satisfying needs; can't touch
Examples of durable goods
Examples of durable goods
Furniture, motor vehicles, household appliances
Effect of increased consumer spending
Effect of increased consumer spending
Higher economic satisfaction; people satisfy more wants/needs
Purpose of tracking consumption patterns
Purpose of tracking consumption patterns
Predict where economy is heading