HOUSEHOLD RESOURCES – THE INCOME-EXPENDITURE-CONSUMPTION RELATIONSHIP

Abstract

At the level of an economy it can be stated that the products made within it, in monetary terms, are equal to the obtained incomes, respectively the sum of the different forms of their use. The purchasing power of the population is influenced not only by the dynamics of consumer prices but also by the dynamics of incomes, between demand and income being a direct dependency relationship. At the microeconomic level, with reference to family, household, personal income is either spent or saved. Consumption decisions are linked to decisions on savings, which often depend on the phase of the economic cycle in which we are. The statistical analysis of data on the income-spending-consumption relationship of agro-food products gives us an insight into the wishes and aspirations of consumers in this field.