Classify each of the following items as a final good or service or an intermediate good or service, and identify which is a component of consgovernment expenditure on goods and services.A. A new limousine for the presidentB. Banking services bought by a studentC. New airplanes bought by United AirlinesD. Packing boxes bought by Amazon.comO 1. A is an intermediate good, B is a final service that is consumption expenditure,C is a final good that is investment, and D is a final good that is investment.O2. A is a final good that is government expenditure, B is a final service that is consumption expenditure,C is a final good that is consumption expenditure, and D is a final good that is investment.O 3. A is an intermediate good, B is a final service that is investment,C is a final good that is investment, and D is an intermediate good.O4. A is a final good that is government expenditure, B is a final service that is consumption expenditure,C is a final good that is investment, and D is an intermediate good.O 5. A is a final good that is government expenditure, B is a final service that is investment,C is a final good that is consumption expenditure, and D is a final good that is investment.

The correct option is:4. A is a final good that is government expenditure, B is a final service that…

Answered: Classify each of the following items as…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question 13 Which one of the following is an example of the economic activity of consumption? An automobile rolls off an assembly line. Sandra wins the lottery. O Hector enjoys watching a sunset. O A new law is passed to improve air quality.
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5 Output and Consumption (in millions of dollars) Real GDP (Y) Consumption (C) Gross Investment (1) Government Purchases (G) 42 28 9 Ask Net Exports (NX) Mc Graw Hill -2 What is the equilibrium level of ouput? Multiple Choice O $42 million О $28 million $84 million $14 million P
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Question 1 1 points Save Answer A company produced 8 dishwasher machines in 2015. The company sold 6 to households in 2015 and added 2 to its inventories. The market value of the dishwasher machines in 2015 was $200 per unit. What is the value of this company's output that will be included O $400 O $1,400 O $1,600 O $2,000 the 2015 GDP?
Quèstion 4 "As disposable income increases, consumption:" O And saving both increase. O Decreases and saving increases. O And saving both decrease. O Increases and saving decreases.
Classify each of the following items as a final good or an intermediate good, and identify whether it is a component of consumption expenditure, investment, or government expenditure on goods and services: Item 1. Packing boxes bought by Amazon.com. Item 2. Starbuck's grande mocha frappuccino bought by a student. Item 3. A new limousine for the president. Item 4. New airplanes bought by United Airlines. Item 1 is and item 2 is O A. an intermediate good; a final good that is consumption expenditure B. a final good that is consumption expenditure; a final good that is consumption expenditure C. a final good that is consumption expenditure; a final good that is investment D. an intermediate good; a final good that is investment Item 3 is and item 4 is O A. an intermediate good; an intermediate good O B. a final good that is government expenditure; a final good that is investment O C. an intermediate good; a final good that is investment D. a final good that is government expenditure; an…
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1. Tbe economy's income and expenditure The following diagram presents a circular-flow model of a simple economy. The outer set of arrows (shown in green) shows the flow of dollars, and the inner set of arrows (shown in red) shows the corresponding flow of inputs and outputs. Markets for Goods and Services Firms Households Markets for Factors of Production Based on this model, households earn income when purchase in markets for factors of production. Suppose Megan earns $575 per week working as a d households Hedical Clinic. She uses $8 to get her car washed at Spotless Car Wash. Spotless Car Wash pays Larry $325 per week to wash cars. Larry firms ourchase medical services from the Medical Clinic. Identify whether each of the following events in this scenario occurs in the market for factors of production or the market for goods and services. Market for Factors of Production Market for Goods and Event Services Megan earns $575 per week working for the Medical Clinic. Larry spends $225…
4. Suppose that you are given the following data for the country of Trumpland: consumption net factor income from abroad 12,800 10,000 3,100 2,200 2,700 2,900 200 interest payments capital consumption allowance government spending on goods and services 2,400 2,900 3,200 wages investment exports imports profits rental payments 700 From the data provided, find a. GDP using the expenditure approach. b. GNP and NNP. c. NI using the income approach. d. statistical discrepancy. e. GDP using the income approach. (HINT: TrumRland is similar to the US economy for 2016, in billions of dollars.)

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