The following table provides data for an economy in a certain year. $$\begin{array} { l l }
\text { Consumption expenditures } & 50 \
\text { Imports } & 40 \
\text { Government purchases of goods and services } & 20 \
\text { Construction of new homes and apartments } & 30 \
\text { Sales of existing homes and apartments } & 40 \
\text { Exports } & 50 \
\text { Government payments to retirees } & 10 \
\text { Household purchases of durable goods } & 20 \
\text { Beginning-of-year inventory } & 10 \
\text { End-of-year inventory } & 20 \
\text { Business fixed investment } & 30
\end{array}$$
Given the data in the table,how much did households spend on nondurables and services?

Question

The following table provides data for an economy in a certain year. $$\begin{array} { l l } 
\text { Consumption expenditures } & 50 \
\text { Imports } & 40 \
\text { Government purchases of goods and services } & 20 \
\text { Construction of new homes and apartments } & 30 \
\text { Sales of existing homes and apartments } & 40 \
\text { Exports } & 50 \
\text { Government payments to retirees } & 10 \
\text { Household purchases of durable goods } & 20 \
\text { Beginning-of-year inventory } & 10 \
\text { End-of-year inventory } & 20 \
\text { Business fixed investment } & 30
\end{array}$$
Given the data in the table,how much did households spend on nondurables and services?

Quizplus · Accepted Answer

To calculate households' spending on nondurables and services, we need to use the following formula:
Household consumption expenditures = Consumption expenditures - Government payments to retirees - Household purchases of durable goods
Household consumption expenditures = 50 - 10 - 20
Household consumption expenditures = 20
Therefore, households spent $20 on nondurables and services. The answer is B.

The Following Table Provides Data for an Economy in a Certain