Which of the Following Expenditures Are Not Included in the Consumption

question 118

Multiple Choice

Which of the following expenditures are not included in the consumption component of GDP?

• A)maid service
• B)purchase of a new home
• C)a new videocassette recorder
• D)a restaurant meal
• E)tax preparation service

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Definitions:

Net Income

The net income of a business following the subtraction of all costs and taxes from its gross earnings.

Income Distribution

The allocation of a company's net income among shareholders in the form of dividends and retained earnings within the company.

Capital Balance

Represents the amount of capital contributed by investors or owners, plus retained earnings minus any distributions or withdrawals.

Interest

The cost paid for borrowing money, typically expressed as a percentage rate over the period of borrowing.