Consumption goods and services include
A)pensions provided by the government.
B)new homes and existing homes (as long as improvements have been made to the existing home).
C)new and used textbooks as long as they are sold via stores or online.
D)washing machines and tickets to NRL games.
E)None of the above.

Question

Quizplus · Accepted Answer

Consumption goods are tangible items that are used up or bought for personal use. Washing machines and tickets to NRL games are tangible items that are bought for personal use and therefore are classified as consumption goods. Options A, B, and C are not consumption goods as they do not involve the purchase of tangible items for personal use. Pensions provided by the government are a form of income and not a tangible item. New homes and existing homes (as long as improvements have been made to the existing home) are considered investment goods as they are not used up in the short term. New and used textbooks may be classified as investment goods if they are purchased for education or career purposes. Therefore, the only option that fits the definition of consumption goods is D.

Consumption Goods and Services Include