Question

Which of the following is not included in the consumption component of GDP?

Group of answer choices
household purchases of appliances
household purchases of food sold in the US but produced abroad
household purchases of medical care
household purchases of newly constructed homes

Answer 1

The options that are not included in the consumption component of GDP are:

household purchases of food sold in the US but produced abroad

household purchases of newly constructed homes

Step-by-step explanation:

The Gross domestic product is the value of final products and services produced in a country in a certain period. Because of that, the household purchases of food sold in the US but produced abroad is not included in the consumption component of the GDP.

Also, the household purchases of newly constructed homes is considered a household investment and because of that is counted in the investment component of the GDP not in the consumption component.