Which of the Following Would NOT Be Included in Consumption

question 37

Multiple Choice

Which of the following would NOT be included in consumption expenditures when calculating GDP?

• A) an individual's purchase of a new car
• B) an individual's purchase of medical services
• C) an individual's purchase of newly issued shares of IBM stock
• D) an individual's purchase of legal services

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Definitions:

Monopolistic Competition

A market structure where many companies sell products or services that are similar, but not identical, allowing for significant control over pricing.

Pure Monopoly

A market structure where a single supplier provides a unique product or service with no close substitutes, controlling the entire market.

Oligopoly

A market structure characterized by a small number of firms controlling a large majority of the market share, often leading to limited competition.

Monopolistic Competitive

A market structure characterized by many firms selling products that are substitutes but differentiated from one another, leading to non-price competition.