The largest component of total spending is
A)private investment,the capital consumption allowance.
B)government spending on public goods.
C)private consumption on durable and non-durable goods.
D)public consumption of non-durable goods.

Question

Quizplus · Accepted Answer

Private consumption on durable and non-durable goods is the largest component of total spending, as it includes all consumption by households on goods that are used for personal use or consumption. This category includes expenditures on food, housing, clothing, and other necessities, as well as on non-essential items such as entertainment, travel, and luxuries. Private investment and government spending on public goods are also important components of total spending, but they are typically smaller in magnitude than private consumption. Public consumption of non-durable goods is not a significant component of total spending, as it represents only a small fraction of total expenditures.

The Largest Component of Total Spending Is