Question

Which is an example of consumption expenditure? Stephanie bought a laptop for her brother. Samantha bought an oven for her cooking show on Food Network. Jim purchased 200 shares of Google stock. Mr. Smith spent $1500 to buy a used car for his son.

Answer 1

Answer: Stephanie bought a laptop for her brother and Mr. Smith spent $1500 to buy a used car for his son.

Explanation: Consumption expenditure are finances spent on goods an individual plans to consume or give to someone for consumption. In both cases in the answers chosen the goods were bought for consumption though not really for the consumption of the people who bought the goods.