2.2.1 - Consumption Expenditure
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Practice Questions
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What is consumption expenditure?
💡 Hint: Think about what families typically buy.
Name one example of a durable good.
💡 Hint: It lasts a long time.
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Interactive Quizzes
Quick quizzes to reinforce your learning
What does consumption expenditure include?
💡 Hint: Think of the types of purchases you make regularly.
Consumption expenditure reflects which aspect of the economy?
💡 Hint: What does it show about people's spending habits?
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Challenge Problems
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A country experiences a significant decrease in consumer confidence. Predict how this might affect consumption expenditure and explain your reasoning.
💡 Hint: Consider how feelings about the future influence buying decisions.
If the government implements a tax cut aimed at increasing disposable income, how might consumption expenditure respond, and why?
💡 Hint: Think about how disposable income affects spending choices.
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