Which of the following expenditures would be counted as consumption in GDP accounts?
A) Mary buys a new computer to check her e-mail and play computer games.
B) Mark buys a new computer for his medical economic consulting business.
C) Leslie, an EPA scientist, buys a new computer for her lab at work.
D) Juan leases a new computer for his graphic design company.

Question

Quizplus · Accepted Answer

Mary's purchase of a new computer for personal use counts as consumption in GDP accounts, as it represents spending on goods and services by households. The other purchases listed would be counted as investment spending by businesses or government, rather than consumption.

Which of the Following Expenditures Would Be Counted as Consumption