Which economic indicator represents all the goods and services purchased by households with their money?

• A. Government Spending
• B. Consumption
• C. Investment
• D. Gross Domestic Product

Answer: (B)

Verified step by step guidance

1. Understand the key economic indicators listed: Government Spending, Consumption, Investment, and Gross Domestic Product (GDP).
2. Recall that Consumption refers specifically to all goods and services purchased by households for their own use.
3. Recognize that Government Spending represents expenditures by the government sector, not households.
4. Identify that Investment relates to business expenditures on capital goods, not household purchases.
5. Note that Gross Domestic Product (GDP) is the total value of all goods and services produced in an economy, which includes consumption, investment, government spending, and net exports, but does not exclusively represent household purchases.