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 consumption expenditure, investment, or government expenditure on goods and services. A. A new limousine for the president B. A DVD bought by a household C. Steel sheets bought by General Motors D. A new apartment building O 1. Ais a final good that is government expenditure, B is a final good that is consumption expenditure, C is an intermediate good, and D is a final good that is investment. O 2. A is an intermediate good, B is a final good that is investment, C is an intermediate good, and D is a final good that is investment. O 3. A is a final good that is government expenditure, B is a final good that is consumption expenditure, C is a final good that is consumption expenditure, and D is a final good that is consumption expenditure. O 4. A is an intermediate good, B is a final good that is consumption expenditure, Cis an intermediate good, and D is a final good that is consumption expenditure. O 5. A is a final good that is government expenditure, B is a final good that is investment, Cis a final good that is consumption expenditure, and D is a final good that is consumption expenditure.
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 consumption expenditure, investment, or government expenditure on goods and services. A. A new limousine for the president B. A DVD bought by a household C. Steel sheets bought by General Motors D. A new apartment building O 1. Ais a final good that is government expenditure, B is a final good that is consumption expenditure, C is an intermediate good, and D is a final good that is investment. O 2. A is an intermediate good, B is a final good that is investment, C is an intermediate good, and D is a final good that is investment. O 3. A is a final good that is government expenditure, B is a final good that is consumption expenditure, C is a final good that is consumption expenditure, and D is a final good that is consumption expenditure. O 4. A is an intermediate good, B is a final good that is consumption expenditure, Cis an intermediate good, and D is a final good that is consumption expenditure. O 5. A is a final good that is government expenditure, B is a final good that is investment, Cis a final good that is consumption expenditure, and D is a final good that is consumption expenditure.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text: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 consumption expenditure,
investment, or government expenditure on goods and services.
A. A new limousine for the president
B. A DVD bought by a household
C. Steel sheets bought by General Motors
D. A new apartment building
O 1. Ais a final good that is government expenditure, B is a final good that is consumption expenditure,
C is an intermediate good, and D is a final good that is investment.
O 2. A is an intermediate good, B is a final good that is investment,
C is an intermediate good, and D is a final good that is investment.
O 3. Ais a final good that is government expenditure, B is a final good that is consumption expenditure,
Cis a final good that is consumption expenditure, and D is a final good that is consumption expenditure.
O 4. Ais an intermediate good, B is a final good that is consumption expenditure,
C is an intermediate good, and D is a final good that is consumption expenditure.
O 5. A is a final good that is government expenditure, B is a final good that is investment,
C is a final good that is consumption expenditure, and D is a final good that is consumption expenditure.
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