Which of the Following Spending Components Makes Up the Largest

question 137

Multiple Choice

Which of the following spending components makes up the largest percentage of Gross Domestic Product (GDP) ?

• A) Consumption expenditures
• B) Government expenditures
• C) Gross private domestic investment expenditures
• D) Expenditures on net exports of goods and services

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Definitions:

Resource

An asset or material that can be used to produce goods or services and achieve economic goals.

Produced

Refers to goods or services that have been manufactured, created, or brought forth through a combination of resources and labor.

Purely Competitive Market

A market structure characterized by a large number of buyers and sellers, homogeneous products, and no single buyer or seller having any control over the market price.

Product Price

The sum of money needed to buy a specific product or service.