Final answer:
The total consumer expenditure on a product is the amount of money spent by consumers on purchasing that product. It plays a major role in driving the economy and accounts for about two-thirds of the GDP.
Step-by-step explanation:
The total consumer expenditure on a product refers to the amount of money spent by consumers on purchasing that product. In the case of the average U.S. household, according to the Consumer Expenditure Survey, the total consumer expenditure in 2015 was $48,109. This amount includes spending on various categories such as shelter, food, vehicles, and other items. For example, the average U.S. household spent roughly one-third of its consumption on shelter and other housing expenses, another one-third on food and vehicle expenses, and the rest on a variety of items.
Consumer expenditure is an important component of GDP and plays a major role in driving the economy. It accounts for about two-thirds of the GDP in any year. This means that consumers' spending decisions have a significant impact on the overall economy.