The largest component of consumption expenditures is:
A)durables.
B)nondurables.
C)services.
D)residential structures.

Question

The largest component of consumption expenditures is:
A)​durables.
B)​nondurables.
C)​services.
D)​residential structures.

Quizplus · Accepted Answer

Services make up the largest component of consumption expenditures, accounting for about two-thirds of total consumption in most developed economies. Durables and nondurables make up the remaining one-third, with durables being a smaller share. Residential structures are not considered part of consumption expenditures, but rather part of investment expenditures.

The Largest Component of Consumption Expenditures Is