4. Classify cach of the following items as a final good or service or an intermediate good or service and identify which is a component of consumption expenditure, investment, or government expenditure on goods and services: Banking services bought by a student. New cars bought by Hertz, the car rental firm. Newsprint bought by USA Today. The purchase of a new limo for the president. New house bought by Al Gore

4. Classify cach of the following items as a final good or service or an intermediate good or service and identify which is a component of consumption expenditure, investment, or government expenditure on goods and services: Banking services bought by a student. New cars bought by Hertz, the car rental firm. Newsprint bought by USA Today. The purchase of a new limo for the president. New house bought by Al Gore

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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7
What is total expenditure in an economy? Total expenditure is equal to expenditure ______. A. on goods and services produced in the economy and goods imported. B. by households, firms, governments, and the rest of the world on goods and services produced in the economy. C. by firms and governments on goods and services produced in the economy
2. Which of the following is NOT included in the calculation of GDP? a) Investment spending b) Government spending
Question 4 Which of the following transactions are viewed as investment in the national income (GDP) accounts? (a) You buy $1000 of federal government bonds; (b) Richard, a carpenter, builds himself a log cabin: (c) The Art Gallery of Nova Scotia buys a painting by Picasso for $20 million. (d) Your family buys a newly constructed home. (e) Apple Computer Corporation builds a new factory to manufacture computers;
1. Suppose your annual income is $82,000 this year and it is expected to increase 25% next year. The market interest rate is 3%. a. Please illustrate all possible consumption patterns with a figure. Do not forget to label your axes. b. You believe that your consumption this year and your consumption next year should be the same. If you follow your plan and consume equally in those two years, how much should you save or borrow this year?
3. Categories of expenditures Shen and Valerie Ferrari live in Swarthmore, PA. Valerie's father, Antonio, lives in Sweden. For each of the following transactions that occur in their lives, identify whether it is included in the calculation of U.S. GDP as part of consumption (C), investment (I), government purchases (G), exports (X), or imports (M). Check all that apply. Transaction Shen's employer upgrades all of its computer systems using U.S.-made parts. Valerie gets a new video camera made in the United States. The state of Pennsylvania repaves highway PA 320, which goes through the center of Swarthmore. Valerie's father in Sweden orders a bottle of Vermont maple syrup from the producer's website. Shen buys a bottle of Italian wine. OOOoo 0 I 00000 G 00 000 X 00000 M OC 0 0 0 0
Question 1 An economy producers 1,000,000 automobiles valued at $15,000 each.Of these, 700,000 are sold to consumers, 200,000 are sold to business, 50,000 are to the government and 25,000 are sold abroad. No automobiles are imported. The automobiles left unsold will be held in inventory by the auto procedures. Compute 1) The total consumption 2) The total investment 3) 3) the total government purchases 4) The total net exports 5) The gross domestics products (GDP) at market value
Question 12 of 75 > O Macmillan Learning (Table) According to the table, net exports of goods and services are equal to GDP Expenditures for 2010 Expenditure Personal consumption Gross private domestic investment Exports Imports Government purchases Capital consumption allowance -$505.4 billion. $505.4 billion. $738.9 billion. -$738.9 billion. Billions $10,353.5 1,769.1 1.746.1 2,251.5 2,975.1 1,030.2
20. Which of the following represents the measurement of GDP as the sum of consumption expenditures, investment, government purchases of goods and services, and net exports? a.Wealth approach b.Income approach c.Expenditure approach d.Saving approach
3. Many parts of the economy are related to one another. In particular, a decrease in spending in one area may have an impact somewhere else. Provide an example of this scenario. Economic theory tells us that "one person's spending is another person's income." What is meant by this phrase? Explain in your own words.
5 Use Table: National Income Accounts. The value of national savings is: Table 1: National Income Accounts $ Trillions GDP 20.00 Consumption 14 Government Spending 3 Budget Balance -1.2 a) $14 trillion b) $3 trillion c) $3.5 trillion d) $0.2 trillion e) $3.2 trillion.
1. This expenditure (formerly general government consumption) includes all current government expenditures for purchases of goods and services (including an employee). a. Capital expenditure b. Consumption c. Utilization d. Transfer payments