How Economy and Business Management Affect by Household Behavior and Family Economy
Household behavior is the production of goods and services by the members of a household, for their own
consumption include accommodation, meals, clean clothes, and child care, using their own capital and their own unpaid
labor. The household economy describes the collective economic activities of households. The study gives a general
understanding of the relationship between income and consumption in times of economic crisis. The study looked at how
disposable income changes in times of economic crisis, which in turn lead to liquidity constraints that force people to cut
down their consumption. The study explains how the longer effect on consumption is a result of anticipation of future
incomes by consumers and how economic crises affect consumer behavior. Therefore it is possible to identify the
characteristic of economic crisis to understand the condition of economic environment faced by households during the crises.
The thesis will try to see how family economic crisis affects general consumption behavior as well as affect the Economy
and Business Management.