Final answer:
The claim that consumption behavior is irrelevant and difficult to collect is false. Consumption behavior is crucial for economic analysis and understanding the relationship between income and spending. Economists use various data, including consumption and savings, to analyze these behaviors.
Step-by-step explanation:
The statement that consumption behavior is irrelevant and difficult information to collect is false. Consumption behavior is a vital area of study in economics, as it provides insights into how people spend their income. The behavior of consumption in relation to disposable income, as represented by empirical evidence from 1962 to 2010, reveals a clear relationship. Such data, corrected for inflation, is critical for understanding how the real level of consumption relates to the real level of income.
Moreover, economists can analyze consumption and saving data to determine patterns like the marginal propensity to consume and autonomous consumption. While it can be challenging for the average person to quantitatively evaluate the impact of their choices, economists have methods to gauge these impacts. Available data on both consumption and savings, especially in the United States, or quality data on savings in other countries, help to analyze consumption behavior accurately.