Consumption, as a component of GDP, measures:
A) spending on goods and services by individuals and households.
B) spending on luxury items only.
C) spending by the government.
D) spending only on goods, not services, by individuals and households.

Question

Quizplus · Accepted Answer

Consumption is a component of GDP that measures spending on goods and services by individuals and households. This includes purchases of basic necessities such as food and clothing, as well as discretionary spending on items like vacations and entertainment. It does not include government spending or luxury items only.

Consumption, as a Component of GDP, Measures