Consumption

question 74

Multiple Choice

Consumption:

• A)is the largest component of GDP.
• B)is the value of total goods purchased by consumers.
• C)does not include the price of new homes.
• D)All of these are true.

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Definitions:

Social Value

The importance or benefit that something has to society, which might not be reflected in its market price, such as education or environmental protection.

Resources

Assets, materials, and inputs used to produce goods and services, including natural resources, human resources, and capital.

Opportunity Cost

The cost of choosing one option over another, representing the value of the foregone alternative.

Marginal Cost

The financial outlay involved in producing an additional unit of a product or service.