Consumption, as a Component of GDP

question 44

Multiple Choice

Consumption, as a component of GDP:

• A) measures spending on goods and services by individuals and households.
• B) includes nondurable goods only.
• C) includes durable goods only.
• D) measures spending only on goods, not services, by private individuals and households.

---

Definitions:

Unincorporated Business

A business structure without a separate legal entity from its owner, where the owner is personally responsible for the business's debts and obligations.

Specialized Equipment

Tools or machinery designed for a specific, often technical or industrial, purpose, necessitating particular skills for operation.

Known Principal

A principal whose identity is disclosed to the third party by the agent at the time of a particular transaction.

Agent Liability

The legal responsibility of an agent to act in the best interest of their principal, facing consequences for failure to comply.