Which of the following correctly lists what is included in the consumption component of GDP?
A)household purchases of services and household purchases of nondurable goods but not any household purchases of durable goods
B)household purchases of nondurable goods and durable goods other than residential construction but not household purchases of services
C)household purchases of services,nondurable goods,and all durable goods
D)household purchases of services,nondurable goods,and durable goods other than residential construction

Question

Quizplus · Accepted Answer

The consumption component of GDP includes household purchases of services (such as haircuts, legal services, and healthcare), nondurable goods (such as food, clothing, and gasoline), and durable goods (such as cars, appliances, and furniture) other than residential construction (which is included in the investment component of GDP). Therefore, choice D correctly lists all the items included in the consumption component.

Which of the Following Correctly Lists What Is Included in the Consumption