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Dilfraz Singh, Lovely Professional University Unit-27: Production Versus Consumption

Notes
Unit-27: Production Versus Consumption

CONTENTS

Objectives
Introduction

27.1 Thoughts about Employment

27.2 Thoughts about Weakness
27.3 Production Limits the Consumption

27.4 Summary
27.5 Keywords

27.6 Review Questions
27.7 Further Readings

Objectives

After reading this unit, students will able to:
• Study the through about employment.
• Know the thought about weakness.
• Explain production limits the consumption.

Introduction

There are mainly two ideologies in economics. First, the economists of 19th century who think
mainly about supply, which is related to production. In this, the main economists were Adam Smith,
David Ricardo, J. B. Say and others. These economists mainly support to open market means no
interference of government. Where the second ideology is of 17th century economists. This ideology
was accepted by the 20th centurion economists who were called ‘God of Economics'. The analysis of
Keynes was mainly depended upon demand. Demand is directly attached with consumption. The
analysis of Keynes was determined the consumption by demand in short time. Means to conclude
we can say that one ideology supports supply i.e. production and second supports demand means
consumption. It means both ideologies are different.

Demand is directly related to consumption.

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