Final answer:
Consumption choices refer to the economic analysis of household behavior, focusing on utility maximization, influenced by disposable income, consumerism, and diminishing marginal utility.
Step-by-step explanation:
The description of how people act when they are buying, using, and discarding goods and services for their own personal consumption is grounded in the concept of consumption choices. This involves an economic analysis of household behavior, assuming that individuals seek to maximize their utility or satisfaction.
Individuals are the best judges of their own utility which can be influenced by various factors including disposable income, consumerism, and the nature of the goods themselves such as durable and nondurable goods. Furthermore, as consumption increases so does the total utility, though the gain from each additional unit tends to decrease, which is described by the concept of diminishing marginal utility.