Which of the Following Purchases by Households Is Considered as Consumption

question 45

Multiple Choice

Which of the following purchases by households is considered as consumption expenditure for the purposes of national-income accounting?

• A)legal services
• B)a new house
• C)a Government of Canada Treasury bill
• D)tractors for use on a family farm
• E)the purchase of company stock

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Definitions:

Cramping

Involuntary, often painful muscular contractions, usually caused by fatigue, mineral depletion, or dehydration.

Mineral Oil

A colorless, odorless, light oil derived from petroleum, used as a lubricant, laxative, and in various industrial applications.

Emollient

A substance that softens and moisturizes the skin, reducing itching and flaking by forming a protective layer on the skin surface.

Lubricant

A substance applied to reduce friction between surfaces in mutual contact, which can also refer to products used to facilitate various medical or personal procedures.