Which of the Following Actions Would Increase the Consumption Spending

question 76

Multiple Choice

Which of the following actions would increase the consumption spending component of the gross domestic product (GDP) ?

• A)Ann cooking dinner for Tim instead of going out
• B)Ann and Tim buying a used microwave oven
• C)Ann and Tim buying vegetables to prepare soup at home
• D)Tim buying Ann a dress
• E)Tim and Ann painting the garage themselves

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Definitions:

Entrepreneurial Ability

The skill or talent required to conceptualize new products or services, create businesses, and achieve economic success.

Economic Resources

Inputs used in the production of goods and services, often categorized into land, labor, capital, and entrepreneurship.

Budget Line

A graphical representation of all possible combinations of two goods that can be purchased with a given budget at specific prices.

Consumer's Income

The total amount of income a consumer has available to spend on goods and services.