Final answer:
The assertion that consumption behavior is irrelevant and difficult to collect is false. Hence, the statement is false.
Step-by-step explanation:
The statement that consumption behavior is irrelevant and difficult to collect is false. Understanding consumer behavior is crucial for businesses and economists as it helps in predicting market trends and making informed decisions. Empirical evidence on consumption, such as the relationship between consumption and disposable income.
It illustrated from 1962 to 2010, provides valuable insights into how real levels of consumption relate to real income levels. Moreover, while there are challenges in collecting accurate consumption data, such as respondents not always giving accurate responses in surveys.
This information is far from irrelevant. Insights about irrational decision-making, like the tendency to value a loss more heavily than a gain, highlight the importance of considering psychological factors in consumer theory.