Question

Which of the following correctly lists what is included in the consumption component of GDP? a. household purchases of services, nondurable goods, and all 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 durable goods other than residential construction d. household purchases of services and household purchases of nondurable goods but not any household purchases of durable goods.

Answer 1

Answer:

The correct answer is A.

Explanation:

The consumption component of GDP is divided into two main categories.

The first is the that of goods: these goods can be divided into non- durable goods,  intended for immediate consumption and durable goods, such as any household item or a car.

The second is services which refers to all household expenses such as electricity, gas, or any other that cannot be stored.