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The sum of durable goods, non-durable goods, and services equals:Group of answer choicesInvestmentFixed InvestmentGovernment PurchasesConsumptionNet Exports

Question

The sum of durable goods, non-durable goods, and services equals:

  • Group of answer choices
    • Investment
    • Fixed Investment
    • Government Purchases
    • Consumption
    • Net Exports
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Solution

To tackle this question, we need to identify the correct economic components that correspond to the provided options. Let's break down these components first.

1. Break Down the Problem

  • We are given three categories: durable goods, non-durable goods, and services.
  • We need to determine what their collective sum represents from the provided multiple-choice options.

2. Relevant Concepts

  • Consumption (C): In economics, consumption encompasses spending by households on durable goods (cars, appliances), non-durable goods (food, clothing), and services (healthcare, entertainment).
  • Investment (I), Government Purchases (G), and Net Exports (X - M) deal with different economic transactions but do not overlap with the components included in consumption.

3. Analysis and Detail

  • Durable goods represent long-lasting items, non-durable goods are products meant for immediate consumption, and services are intangible products consumed at the point of sale.
  • All these components fall under personal or household consumption expenditures in national accounts.

4. Verify and Summarize

  • Given that durable goods, non-durable goods, and services all contribute to the total consumption in an economy, the correct answer from the options provided should directly be related to these components.

Final Answer

Therefore, the sum of durable goods, non-durable goods, and services equals Consumption.

This problem has been solved

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