Which of the following is included in the consumption component of U. S. GDP? Question 12 options:

a. purchases of staplers, paper clips, and telephones by U. S. business firms

b. purchases of natural gas by U. S. households

c. purchases of newly constructed homes by U. S households

d. All of the above are correct.

Question

Business

Marlon Woodward

11 September, 10:41

Which of the following is included in the consumption component of U. S. GDP? Question 12 options:

a. purchases of staplers, paper clips, and telephones by U. S. business firms

b. purchases of natural gas by U. S. households

c. purchases of newly constructed homes by U. S households

d. All of the above are correct.

+1

Answers (1)

Know the Answer?

Dax Levine · Answer 1

Answer is option b, i. e. purchase of natural gas by U. S. households.

Explanation:

Consumption component of U. S. GDP includes purchase of various durable goods, non-durable goods, and also various intangible services. But anything that is purchased as a means of investment rather than for personal consumption is not regarded as consumption component in GDP. Here, purchase of newly constructed houses is an asset and thus, is not included in these components. Similarly, purchase made for business purposes is also excluded from the list of consumption components.