Consumption expenditure is subdivided into four categories,including
A) durables,nondurables,services and new homes.
B) durables,nondurables,semi-durables,and new homes.
C) durables,nondurables,semi-durables,and services.
D) durables,nondurables,exports and imports.
E) durables,nondurables,net exports and services.

Question

Quizplus · Accepted Answer

The correct categories for consumption expenditure are durables (e.g. cars, appliances), nondurables (e.g. food, clothing), semi-durables (e.g. furniture, clothing that lasts longer than typical nondurables), and services (e.g. healthcare, education, haircuts). New homes are not considered part of consumption expenditure but rather fall under investment expenditure. Option D is incorrect as exports and imports are not categories of consumption expenditure, and option E is incorrect as net exports are not part of consumption expenditure.

Consumption Expenditure Is Subdivided into Four Categories,including