Household Consumption

question 101

Multiple Choice

Household consumption:

• A) only accounts for about 20 per cent of total GDP.
• B) is the largest single component of GDP.
• C) accounts for around 80 per cent to 85 per cent of total GDP each year.
• D) is the smallest component of GDP.

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Definitions:

Ratio

A quantitative relationship between two numbers, showing how many times one value is contained within another.

Liabilities

Financial obligations or debts that a business owes to others, which must be paid back in the future.

Owner's Equity

The residual interest in the assets of a company after deducting liabilities, representing ownership interest.

Ratio

A quantitative relationship between two numbers, showing how many times one value contains or is contained by the other.