Practice Consumption Expenditure (2.2.1) - Chapter 6: National Income

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8 questions

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6 sample questions

Question 1.
What is consumption expenditure?
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Think about what families typically buy.
Question 2.
Name one example of a durable good.
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It lasts a long time.
3Question 3.
What does consumption expenditure include?
- Only services
- Durable and non-durable goods
- Only non-durable goods
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Think of the types of purchases you make regularly.
4Question 4.
Consumption expenditure reflects which aspect of the economy?
- True
- False
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What does it show about people's spending habits?
Question 5.
A country experiences a significant decrease in consumer confidence. Predict how this might affect consumption expenditure and explain your reasoning.
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Consider how feelings about the future influence buying decisions.
Question 6.
If the government implements a tax cut aimed at increasing disposable income, how might consumption expenditure respond, and why?
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Think about how disposable income affects spending choices.

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