Which of the Following Would Be Classified as a Personal

question 181

Multiple Choice

Which of the following would be classified as a personal consumption expenditure?

• A) All of the following.
• B) Your purchase of a newly constructed house
• C) Your purchase of a preowned house.
• D) Your purchase of one share of Microsoft stock.
• E) Your purchase of this economics course.

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Definitions:

Organic

Referring to food or farming methods that do not use artificial chemicals, GMOs, antibiotics, or hormones.

Monopoly

A market structure characterized by a single seller selling a unique product in the market.

Long Run Equilibrium

A state in which all firms in a market are earning normal profit and all inputs can be adjusted, leading to market stability.

Short-run Profit

The excess of revenues over costs within a brief period, not accounting for adjustments in all resource inputs or long-term sustainability.