Which of the Following Is Included in the Consumption Component

question 32

Multiple Choice

Which of the following is included in the consumption component of U.S.GDP?

• A)purchases of staplers,paper clips,and pens by U.S.business firms
• B)purchases of natural gas by U.S.households
• C)purchases of newly constructed homes by U.S.households
• D)All of the above are correct.

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Definitions:

Free Rider

An individual or entity that benefits from resources, goods, or services without paying for them, often leading to market failures.

Costs of Production

All expenses incurred in the process of creating and offering goods or services for sale, including raw materials, labor, and overheads.

Nonexcludable

A characteristic of a good or service that makes it impossible to prevent individuals who have not paid for it from having access to it.

Nonpaying Customers

Individuals or entities that receive goods or services without providing payment to the provider, often leading to revenue loss.