The distinction between consumption and consumption expenditures, although subtle, becomes important in the case of
A) services, since they are rapidly becoming a much larger portion of consumption.
B) nondurables, since they are becoming a much larger portion of consumption.
C) durables, since they are purchased erratically but consumed more or less continuously over time.
D) both a and b.
E) a, b, and c.

Question

Quizplus · Accepted Answer

Consumption expenditures refer to the actual spending on goods and services, while consumption refers to the use of these goods and services. For durables, the expenditure occurs at the time of purchase, but the consumption happens over time, making the distinction important.

The Distinction Between Consumption and Consumption Expenditures, Although Subtle, Becomes