A consumption good that would NOT be counted in GDP would be:
A) the coffee Cyndi buys on her way to work in the morning.
B) Cyndi's brand new car.
C) the sunglasses Cyndi bought on clearance sale yesterday.
D) Ford company's purchase of steel.

Question

Quizplus · Accepted Answer

Consumption goods are those goods which are used for direct consumption by the households. Ford company's purchase of steel is an intermediate good, which is used for producing cars and hence, is not a consumption good. Therefore, it would not be counted in GDP. Conversely, choices A, B, and C are all consumption goods and would be counted in GDP.

A Consumption Good That Would NOT Be Counted in GDP