Which of the Following Is Included in the Consumption Component

question 57

Multiple Choice

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

• A)purchases of staplers, paper clips, and telephones 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:

Sales Mix

The combination of different products or services that a company sells, impacting its overall profitability.

Operating Leverage

The degree to which a firm can increase operating income by increasing revenue, a measure of how sales growth translates to growth in operating income.

Margin of Safety

The difference between actual or expected sales and the break-even point. It measures how much sales can drop before a business incurs a loss.

Relevant Range

The scope of actions where the assumptions regarding variable and fixed costs hold true.