Which of the Following Expenditures Would Be Counted as Consumption

question 126

Multiple Choice

Which of the following expenditures would be counted as consumption in GDP accounts?

• A)​Mary buys a new home computer to check her e-mail and play computer games.
• B)​Mark buys a new computer for his medical economic consulting business.
• C)​Leslie, an EPA scientist, buys a new computer for her lab at work.
• D)​Juan leases a new computer for his graphic design company.

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Definitions:

Inventory Cost

The total cost associated with holding and managing inventory, including storage, insurance, and obsolescence.

Building

A structure with a roof and walls, such as a house or factory, used for living, working, storage, or other purposes.

Scarce Resources

Resources that are limited in availability and cannot satisfy all wants and needs due to their limited supply.

Economics

The social science that studies how individuals, governments, firms, and nations make choices on allocating scarce resources to satisfy their unlimited wants.