Asked by Makayla Kortz on Apr 29, 2024
Verified
Which of the following expenditures is included in the consumption component of the gross domestic product (GDP) ?
A) The money spent on the purchase of stocks
B) The money spent on the purchase of used furnitures
C) The money spent on the purchase of a used car
D) The money spent on the purchase of kitchen appliances
E) The money spent on the purchase of bonds issued by the government
Consumption Component
A part of aggregate demand representing the total value of all goods and services consumed by households.
Gross Domestic Product
The overall value, in market or monetary terms, of every final good and service produced within a nation's borders in a set time frame.
Kitchen Appliances
Various electrical or mechanical devices used in a kitchen for performing cooking, cleaning, or food preservation tasks.
- Distinguish between expenditures included and excluded in the consumption component of GDP.
Verified Answer
ZK
Zybrea KnightMay 04, 2024
Final Answer :
D
Explanation :
Only the money spent on the purchase of kitchen appliances is included in the consumption component of the GDP. Purchases of stocks, used furniture, used cars, and government bonds are not considered part of consumption in GDP.
Learning Objectives
- Distinguish between expenditures included and excluded in the consumption component of GDP.