Principles of Economics, 7th Edition (MindTap Course List)
Principles of Economics, 7th Edition (MindTap Course List)
7th Edition
ISBN: 9781285165875
Author: N. Gregory Mankiw
Publisher: Cengage Learning
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Chapter 25, Problem 3PA

Subpart (a):

To determine

Examples ofPrivate and Government consumption and investment.

Subpart (b):

To determine

Examples ofPrivate and Government consumption and investment.

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Describe how government economic policies play a role in the economy? with details and sources?
a. You buy a pair of new cowboy hat on a trip to Texas . b.You buy a pair of vintage cowboy boots from your cousin in El Paso c. A cat burglar sells $10,000 of stolen jewelry to a fence d.apple issues $1 billion worth of new shares e.GM purchases $100 million worth of tires from Firestone f. A private company builds a new road in Memphis g.Stay-at-home parents provide an estimated $500 million of child care services . h.The government pays out unemployment benefits
Which of the following are capital goods? Explain why. A. A school teacher because she helps her students increase their productive resources B. A pack of bubble gum because it can be purchased now and consumed in a future period OC. An interstate highway and a stealth bomber because governments buy and use them in the current period OD. A strawberry field because it is used to produce strawberries E. An interstate highway and a stealth bomber because governments buy these to increase productive resources to use during future periods to produce other goods and services Which of the following are capital goods? OA. A movie because it can be viewed now and in the future OB. A movie because all factors of production that are not labor are capital goods OC. An airplane, a garbage truck, and an ATM because businesses use these to produce other goods and services in the future D. An airplane, a garbage truck, and an ATM because all factors of production that are not labor are capital goods…
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