Which of the Following Expenditures Is Included in the Consumption

question 198

Multiple Choice

Which of the following expenditures is included in the consumption component of the gross domestic product (GDP) ?

• A) the money spent on the purchase of stocks
• B) the money spent on the purchase of used furniture
• C) the money spent on the purchase of a used car
• D) the money spent on the purchase of kitchen appliances
• E) the money spent on the purchase of bonds issued by the government

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Definitions:

Total Liabilities

The sum of all financial obligations a company owes to outside parties, including debts and other financial commitments.

Shareholders' Equity

The residual interest in the assets of a corporation that remains after deducting its liabilities; also known as stockholders' equity.

Equity Multiplier

A financial leverage ratio that measures the portion of a firm's assets that is financed by stockholder's equity.

Profit Margin

A financial ratio that shows the percentage of revenue that remains as profit after all expenses have been paid, including costs, taxes, and interest.