Question

The consumption category that accounts for the largest proportion of consumer spending is ______.

Options:
A) Entertainment
B) Housing
C) Transportation
D) Education

Answer 1

Housing is the consumption category that accounts for the largest proportion of consumer spending.

Step-by-step explanation:

The category that accounts for the largest proportion of consumer spending is Housing. According to the Consumer Price Index, housing makes up 41% of consumer spending. This includes expenses such as rent or mortgage payments, utilities, and home maintenance costs.

Transportation, on the other hand, only accounts for 16.8% of consumer spending, making it a smaller proportion compared to housing.

Entertainment and education are also important categories, but they do not account for as large a proportion of consumer spending as housing.