The consumption of the composite good is measured by:
A)total outlays on all goods included in the group.
B)adding up the quantities of all goods included in the group.
C)adding up the prices of all goods included in the group.
D)the relative prices of the goods included in the group.

Question

Quizplus · Accepted Answer

The consumption of the composite good is measured by total outlays on all goods included in the group. This means that the total amount of money spent on purchasing all the goods in the composite group is the measure of the consumption of the composite good.

The Consumption of the Composite Good Is Measured By