Consumption Expenditure Includes

question 53

Multiple Choice

Consumption expenditure includes

• A)the production of consumption goods not sold and held in inventory.
• B)the purchase of consumption goods made domestically but consumed by foreigners.
• C)purchase of goods and services by local government.
• D)services,durables,and non-durable goods.

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Definitions:

Free Trade

International trade left to its natural course without tariffs, quotas, or other restrictions.

Absolute Advantage

The ability of an individual, company, or country to produce a good or service at a lower cost per unit than the cost at which any other entity can produce the same good or service.

Comparative Advantage

The endowment of a person, enterprise, or nation to output a good or service at a diminished opportunity cost relative to rival entities.

Barriers to Trade

Measures that governments or public authorities introduce to restrict or prevent international trade.