Question

An organization estimated that in a particular year the population of a country spent ​$11.2 trillion in personal consumption. The major categories of these expenditures are durable goods ​($ 1.8 ​trillion; for​ example, cars,​ furniture, recreational​ equipment), nondurable goods ​($2.2 ​trillion; for​ example, food,​ clothing, fuel), and services ​($6.9 ​trillion; for​ example, health​ care, education,​ transportation). Complete parts​ (a) through​ (e) below.

Answer 1

Answer:So the estimated amount of personal consumption expenditures on durable goods is 2.1 trillion dollars.

Explanation:

(a) What percentage of personal consumption expenditures is spent on durable goods?

To find the percentage of personal consumption expenditures spent on durable goods, we divide the amount spent on durable goods by the total personal consumption expenditures and multiply by 100:

percentage spent on durable goods = (1.8/11.2) x 100% = 16.07%

So 16.07% of personal consumption expenditures is spent on durable goods.

(b) What percentage of personal consumption expenditures is spent on nondurable goods?

To find the percentage of personal consumption expenditures spent on nondurable goods, we divide the amount spent on nondurable goods by the total personal consumption expenditures and multiply by 100:

percentage spent on nondurable goods = (2.2/11.2) x 100% = 19.64%

So 19.64% of personal consumption expenditures is spent on nondurable goods.

(c) What percentage of personal consumption expenditures is spent on services?

To find the percentage of personal consumption expenditures spent on services, we divide the amount spent on services by the total personal consumption expenditures and multiply by 100:

percentage spent on services = (6.9/11.2) x 100% = 61.61%

So 61.61% of personal consumption expenditures is spent on services.

(d) If the estimates for durable goods and services are correct, what is the estimated amount of personal consumption expenditures on nondurable goods?

To find the estimated amount of personal consumption expenditures on nondurable goods, we subtract the estimated amounts spent on durable goods and services from the total personal consumption expenditures:

estimated amount spent on nondurable goods = total personal consumption expenditures - estimated amount spent on durable goods - estimated amount spent on services

estimated amount spent on nondurable goods = 11.2 - 1.8 - 6.9

estimated amount spent on nondurable goods = 2.5 trillion dollars

So the estimated amount of personal consumption expenditures on nondurable goods is 2.5 trillion dollars.

(e) If the estimates for nondurable goods and services are correct, what is the estimated amount of personal consumption expenditures on durable goods?

To find the estimated amount of personal consumption expenditures on durable goods, we subtract the estimated amounts spent on nondurable goods and services from the total personal consumption expenditures:

estimated amount spent on durable goods = total personal consumption expenditures - estimated amount spent on nondurable goods - estimated amount spent on services

estimated amount spent on durable goods = 11.2 - 2.2 - 6.9

estimated amount spent on durable goods = 2.1 trillion dollars

So the estimated amount of personal consumption expenditures on durable goods is 2.1 trillion dollars.