How do the decisions you make as a consumer affect the economy

2 answers:

5 0

Firms make their production decisions based on consumers' needs and wants, that is, there is only supply of goods and services because there is a demand for it. In this way, every consumption decision affects the economy, as it affects production. Production demands resources such as capital, labor and raw materials. Therefore, consumer decisions affect the functioning of the economy as a whole.

Gekata [30.6K]3 years ago

3 0

A consumer is someone who purchased goods or services. So if people stop buying that certain good or service. Then the economy can go down because there won't be as much money coming in as there was. And then if people buy more of a certain good or service then the economy will go up because they'll be receiving more money.
I hope this helps.

You might be interested in

Even before the United States (blank) the Louisiana territory, Jefferson wanted to explore this land. One (blank) of the Lewis a

melisa1 [442]

What are the options? Because i believe the first to be bought.

6 0

3 years ago

Seriously please help? I'm stuck....China has one of the fastest-growing economies in the world. China joined the WTO in 2001. H

yawa3891 [41]

China's membership to WTO allowed made China open to foreign investments to different sectors of their business. It gave more oppurtunities for China . Though it was really tough for them because they had to make various changes in their economy. They had to open their business to the world, decentralized trade, slashed the tariffs as well as adapted duall exchange rate. Even though they are progressing well, but they still have problems with intellectual rights. There hindrances would be the economic transition from a closed country to an opening country as well as the need to meet up with the quota since sme products would be phased out.

6 0

3 years ago

Year

liq [111]

Answer: