Question

How does consumption satisfies the condition for an economic activity i.e how does it includes use of scarce resources for production of goods and services?

Answer 1

Consumption satisfies the condition of economic activity in the sense that it is consumption that forms the base for any kind of production activity. Had there been no consumption (demand), production would not take place. In other words, it is consumption that triggers the use of scarce resources for the production of various goods and services.