Using the expenditure approach, consumption expenditures include household purchases of:
A) durable and nondurable goods and services.
B) durable and nondurable goods.
C) durable and nondurable goods and taxes.
D) durable and nondurable goods and residences.
E) nondurable goods.

Question

Quizplus · Accepted Answer

Consumption expenditures are the purchases made by households on goods and services intended for final use. The expenditure approach divides GDP into four components, one of which is consumption. Consumption expenditure includes purchases of durable and nondurable goods as well as services. Therefore, choice A is the correct answer.

Using the Expenditure Approach, Consumption Expenditures Include Household Purchases Of