Question

Ms. Groombridge, who lives in Thunder Bay, conducted the following transactions during 2020. Which would be counted as consumption spending by Statistics Canada in the 2020 national accounts? Check ALL choices that are correct. She orders a new Tesla car from the United States. She purchases a new house in Thunder Bay She spends $50 on a haircut once her favourite hair salon is allowed to reopen. She buys $25 worthy of raspberries from her neighbour Bart who does not report his earnings because he does not think it is necessary. She purchases new ovens for her restaurant.

Answer 1

Consumption spending is the total money spent on final goods and services by individuals and households for personal use and enjoyment. It includes all private purchases of durable goods, nondurable goods, and service.

All the options are correct except for the last one. She purchased an oven for her restaurant, not for her own use.

She purchases a new car and house for her own use, she spends $50 for her haircut though using a service and she is paying to Bart for raspberries so this is her spending must be included in the consumption spending.