Final answer:
Consumers drive the economy through their spending on goods and services, which constitutes the largest part of GDP and influences business production and growth, as well as promoting economic efficiency via the 'invisible hand' concept.
Step-by-step explanation:
The question 'How does a consumer drive the economy?' relates to how consumer behavior influences economic growth.
A consumer impacts the economy predominantly through their role in the circular flow of economic activity and their influence on gross domestic product (GDP). Consumers spend money in the product market to purchase goods and services. This spending, known as consumption expenditure by households, is the largest component of GDP, comprising about two-thirds.
It highlights the power of consumer decisions in shaping market demand and therefore business output. Businesses, in turn, use consumers' spending to hire and pay workers, which feeds back into the economy as those workers spend their incomes, perpetuating economic growth.
Additionally, the pursuit of self-interest by consumers, as theorized by Adam Smith, leads to greater economic efficiency and diversity in goods and services through the mechanism of the 'invisible hand.'