Question

The rental value of an owner-occupied house is included in which component of GDP?

Consumption

Intermediate value

Fixed investment

None of the above

Which of the following components of GDP is the largest for the US economy?

		Consumption
		Investment
		Government purchases
		Net exports

Answer 1

1. Option B is correct
Ie
Intermediate value

The intermediate value theorem describes a key property of continuous functions: for any function ff that's continuous over the interval [a,b][a,b], the function will take any value between f(a)f(a) and f(b)f(b) over the interval.

2. Option A is correct

I.e. consumption

Because

Consumption is normally the largest GDP component in the economy, consisting of private expenditures (household final consumption expenditure) in the economy. Personal expenditures fall under one of the following categories: durable goods, non-durable goods, and services.