Question

Which of the following is included in the consumption component of gdp?

a. household purchases of appliances.
b. household purchases of medical care.
c. household purchases of food.
d. all of the above are included in the consumption component of gdp.

Answer 1

The correct answer is option d. The consumption component of GDP includes household purchases of appliances, household purchases of medical care, and household purchases of food.

Step-by-step explanation:

The consumption component of GDP includes household purchases of appliances, household purchases of medical care, and household purchases of food. So, the correct option is d. all of the above are included in the consumption component of GDP.

Consumption expenditure by households is the largest component of GDP, accounting for about two-thirds of the GDP in any year. Consumer spending is a major driver of the economy, and it has increased modestly over time. Examples of items included in the consumption component of GDP are appliances, medical care, and food.