Correct Answer: (c) Consumption

Explanation

When a household buys a bicycle for personal use, it is called consumption.

The family uses the bicycle for travelling or other personal needs.

It is not bought to produce goods for sale.

In simple words: Buying a bicycle for personal use is consumption because the family uses it to satisfy its needs.

Remember the Difference

• Consumption: A family buys a bicycle for personal use.
• Investment: A delivery business buys bicycles to help workers deliver goods.

The purpose of buying the bicycle determines how it is classified.