Johnny Ch Lok

Economic Environment Measurement to Consumer Psychology Johnny Ch Lok

Can apply macro economic method to predict consumer variable behavior to any country? For example, when and how and why do the country consumers, they reduce shopping times or consumption desires in the country. For production and the labor market concept, production is integrated into the general equilibrium framework by firms. Firms utilize capital and labor to produce output and maximize the wealth of the agents who own them. Households ( house consumers ) now maximize their utility through the consumption of commodities and leisure in themselves country. Households provide labor inputs to firms in return for wages in order to be able to obtain commodities. There are now markets for factor of production, capital and labor, in addition to commodity market. In short run, the marginal product of labor ( the extra amount of output obtained by adding another unit of labor) fulls as a firm takes on more employees. Profit-maximizing firms will increase employment to the level at which the revenue resulting from employment an additional employee equals the marginal cost of an extra employee. Thus, the lower the real wage, the higher the demand for labor. Individual workers maximize utility by choosing the optimium combinations of work and leisure and the supply of labor's defined as the level of employment forthcoming at a given real wage rate. Hence, all who desire to find employment at the existing level of real wages will do so, when the country's employment condition and product sale number both are in equilibrium, due to the country's businessmen must have enough buyers number as well as their demands are still increasing. Then, the country's employers will choose to increase employees number or increase wage to attract them to help their businesses to increase more productivities. So, it explains when on developing country has high unemployment ratio to compare other general developing countries . It implies that itself country's consumers' shopping desires will reduce or their shopping times will reduce, because their shopping desires reduce, it influences the country's businessmens' products sale number will also reduce. Then, they will choose to reduce employees number or reduce their wages to compensate their sale loss in possible. On conclusion, in macro economic view, it proves that it has direct or indirect case and effect relationship between the country itself employment rate and the year consumers overall shopping times or consumption desires level and overall market GDP ( consumer expenditure overall amount in the year. It can apply the year employment rate number to measure whether the country's consumer shopping desires had been reducing or had been raising in the country in possible. Hence, any country's difference between the year employment ratio and last yeaar employment ratio which can explain why it's the year overall consumption market GDP amount had risen up or has fallen down in possible in order to predict what reasons cause this country's consumer shopping desires to be increase or decrease.