The Consumption Component of GDP Includes Spending on

question 99

Multiple Choice

The consumption component of GDP includes spending on

• A)durable goods and nondurable goods,but not spending on services.
• B)durable goods and services,but not spending on nondurable goods.
• C)nondurable goods and services,but not spending on durable goods.
• D)durable goods,nondurable goods,and services.

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Definitions:

Prior Process Costs

Expenses that have been incurred in earlier stages of production or processing, which are carried forward into the cost of subsequent production processes.

Transferred In Costs

Costs associated with items that are partially produced in one department of a company and then moved to another department for further processing or completion.

Process

A series of actions or steps taken in order to achieve a particular end.

Homogeneous Products

Goods that are essentially identical in quality and function, making them indistinguishable from one another to consumers.