Consumption serves to satisfy a limited set of basic material needs. These mainly include the need for adequate food and shelter (a roof over one's head and clothing). These basic needs can be satisfied with a very low level of consumption.

Why is consumption important to human beings?

Consumption is the beginning of all human economic activities. A man feels a desire and then he makes an effort to satisfy it. When the effort has been made, the result is the satisfaction of the want Consumption also means the satisfaction of human wants.

Why is consumption important in the country's economy?

Keynesian theory states that if consuming goods and services does not increase the demand for such goods and services, it leads to a fall in production. A decrease in production means businesses will lay off workers, resulting in unemployment. Consumption thus helps determine the income and output in an economy.