Chapter 3.B, Problem 71E

Personal Consumption. The Bureaus of Economic Analysis estimates that in 2010 (most recent data) Americans spent $10.2 trillion in personal consumption. The major categories of these expenditures are durable goods ($1.0 trillion; for example, cars, furniture, recreational equipment), nondurable goods ($2.3 trillion; for example, food, clothing, fuel), and services ($6.8 trillion; for example, health care, education, transportation).

a. What is the approximate annual per capita spending for personal consumption? Assume a population of 315 million.

b. What is the approximate daily per capita spending for personal consumption?

c. On average about what percentage of personal spending is devoted to services? Is this figure consistent with your own spending?

d. Spending on health care was estimated to be $1.7 trillion in 2010. About what percentage of all personal spending is devoted to health care?

e. In 2000, the total spending on personal consumption was $6.8 trillion, while health care spending was $918 billion. Compare the percentage increase in total spending and health care spending over the decade.