Which of the following expenditures would be counted as consumption in GDP accounts?
A)Mary buys a new home 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

Which of the following expenditures would be counted as consumption in GDP accounts?
A)​Mary buys a new home 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.

Quizplus · Accepted Answer

Mary's purchase of a new home computer for personal use is considered consumption and is therefore included in GDP accounts.

Answer: B, C, D 
 The purchases by Mark, Leslie, and Juan are all made for business purposes and are therefore considered investment spending rather than consumption. They would be included in GDP as part of gross private domestic investment (GPDI) instead of personal consumption expenditures (PCE).

Which of the Following Expenditures Would Be Counted as Consumption