MAROECONOMICS PRINCIPLE
CONSUMPTION THEORY
BY :
SILVIA ANGGRAINI DARMAWAN
NPM : 1610631030261
ACCOUNTING / I / A8
ECONOMIC & BUSINESS FACULTY
SINGAPERBANGSA KARAWANG UNIVERSITY
2016
PREFACE
First at
all, give thanks for God’s love and grace for us.
Thanks to God for helping me and give me chance to finish this assignment timely. And I would like to say thank you to Mr. Irvan Yoga Pradistya, SE., MM., Ak as the lecturer that always teaches us and give much knowledge about how to practice English well.
Hopefully we as a student in “Singaperbangsa Karawang University” can work more professional by using English as the second language whatever we done. Thank you.
Silvia Anggraini Darmawan
NPM : 1610631030261
TABLE OF CONTENT
COVER ..........................................................................................................................
PREFACE
.....................................................................................................................
TASK 1 ( Consumption Theory )
..................................................................
REFERENCE
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TASK 1
( Consumption Theory )
1. What is consumption
theory?
In theory consumption keynes
stated that the amount consumption expenditure ( c ) based on the size income (
y ) the people .From our analysis expenditure put forward by keynes the there
are two the important thing :
·
MPC < APC, and
·
the APC the rich smaller than the APC the poor .
2. Who are the actors?
·
Household Sector : This sector includes the
entire, wants-and-needs-satisfying, eating, breathing, consuming population of
the economy. In a word, it
includes everyone, all consumers, all people, and every member of society.
Pollyanna Pumpernickel, a hardworking mother of two, is a representative member
of the household sector. So too is Winston Smythe Kennsington III, an affluent
corporate executive.
·
Business Sector : This sector contains the
private, profit-seeking firms in the
economy that combine scarce resources into the production of wants-and-needs
satisfying goods and services. It includes proprietorships, partnerships, and corporations.
OmniConglomerate, Inc., a multi-billion dollar, multi-national, mega
corporation, exemplifies a member of the business sector. However, Manny
Mustard, a proprietor who owns and operates a little sandwich shop is also part
of the business sector.
·
Government Sector :
This sector includes all government entities that impose resource allocation
decisions, that might not be made otherwise, on the rest of the economy. It
consists of the three primary levels of federal, state, and local government
responsible for passing and enforcing laws. Of course, all branches and
agencies of the U.S. Federal Government--Congress, Department of
Transportation, Environmental Protection Agency, etc.--is part of the
government sector. So too is the Shady Valley City Council and the local Shady
Valley Board of Education included in the government sector.
· Foreign Sector : This sector is comprised of everyone and everything
outside the political boundaries of the domestic economy. It includes
households, businesses, and governments in other countries. The foreign sector
of the domestic United States economy includes the governments of other nations
such as the Republic of Northwest Queoldiolia. It also includes citizens and
businesses in other nations, such as Horst Duncanstein, a citizen of Northwest
Queoldiolia, and Quedoldiolian Sundial Company, also located in Northwest
3. Why
is consumptions related with income?
The
income effect is a phenomenon observed through changes in purchasing power. It
reveals the change in quantity demanded brought by a change in real income. The
figure 1 on the left shows the consumption patterns of the consumer of two
goods X1 and X2, the prices of which are p1
and p2 respectively. The initial bundle X*, is the
bundle which is chosen by the consumer on the budget line B1. An
increase in the money income of the consumer, with p1 and p2
constant, will shift the budget line outward parallel to itself.
In the figure, this means that the change in the
money income of the consumer will shift the budget line B1 outward parallel to
itself to B2 where the bundle X' bundle will be chosen. Again, an
increase in the money income of the consumer will push the budget line B2
outward parallel to itself to B3 where the bundle X" will be the
bundle which will be chosen. Thus, it can be said that, with variations in
income of the consumers and with the prices held constant the income–consumption
curve can be traced out as the set of optimal points.
4. How
can Income is major factors for consumptions ?
Income is by far the must important factor that
determines a community’s propensity to consume.
As its income rises or falls, consumption
spending also rises and falls. The figures given afore show changes in
consumption caused by an increase in income (with no change in the propensity
to consume) and changes in consumption caused by a change in the propensity to
consume (with no change in income).
REFERENCE
http://mobile.sederet.com/translate.php?q=hopeless&lang=en_id&var=90f17b6961a5d7257b59830bf22de55b
http://www.amosweb.com/cgi-bin/awb_nav.pl?s=wpd&c=dsp&k=macroeconomic+sectors
https://en.wikipedia.org/wiki/Income%E2%80%93consumption_curve
http://www.economicsdiscussion.net/consumption-function/12-objective-factors-affecting-consumption-keynes-psychological-law/14469
