Which of the following is a good that would be counted as consumption in GDP?
A) The Subway sandwich Tony ate for lunch
B) The cake Tony baked at home and shared with his roommate
C) The money Tony spent on the purchase of a used car
D) Common stock that Tony purchased for his 401(k)

Question

Quizplus · Accepted Answer

Consumption in GDP includes goods and services that are purchased by households for their own use, such as food, clothing, housing, and transportation. Tony's Subway sandwich falls under this category.

Answer: C
 The purchase of a used car by Tony is also counted as consumption in GDP, as it is a durable good that will be used for personal transportation.

Answer: B and D are not counted as consumption in GDP. B is not counted because the cake Tony baked at home is not a good or service that was purchased from a producer or vendor. D is not counted because purchasing common stock does not involve the purchase of a final good or service for personal use.

Which of the Following Is a Good That Would Be