Consumption expenditure includes
A)the production of consumption goods not sold and held in inventory.
B)the purchase of consumption goods made domestically but consumed by foreigners.
C)purchase of goods and services by local government.
D)services,durables,and non-durable goods.

Question

Quizplus · Accepted Answer

Consumption expenditure includes the purchase of goods and services such as services, durables, and non-durable goods that are intended for personal consumption. Option A is incorrect because goods held in inventory are not considered as consumption expenditure. Option B is incorrect because consumption goods are purchased by individuals for personal use, not by foreigners. Option C is incorrect because government purchases are not considered as consumption expenditure.

Consumption Expenditure Includes