Classify each of the following items as a final good or an intermediate good, and classify the expenditure on each final good as consumption expenditure or investment: Item 1. New aircraft bought by Southwest Airlines Item 2. Jet engines bought by Boeing Item 3. The ringtone you bought today Item 4. A new apartment building Item 1 is _______ and item 2 is _______. A. an intermediate good; an intermediate good B. a final good that is investment; an intermediate good C. a final good that is investment; a final good that is consumption expenditure D.
Classify each of the following items as a final good or an intermediate good, and classify the expenditure on each final good as consumption expenditure or investment: Item 1. New aircraft bought by Southwest Airlines Item 2. Jet engines bought by Boeing Item 3. The ringtone you bought today Item 4. A new apartment building Item 1 is _______ and item 2 is _______. A. an intermediate good; an intermediate good B. a final good that is investment; an intermediate good C. a final good that is investment; a final good that is consumption expenditure D.
Brief Principles of Macroeconomics (MindTap Course List)
8th Edition
ISBN:9781337091985
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter2: Thinking Like An Economist
Section: Chapter Questions
Problem 4PA
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Classify each of the following items as a final good or an intermediate good, and classify the expenditure on each final good as consumption expenditure or investment:
Item 1. New aircraft bought by Southwest Airlines
Item 2. Jet engines bought by Boeing
Item 3. The ringtone you bought today
Item 4. A new apartment building
Item 1 is _______ and item 2 is _______.
an intermediate good;
an intermediate gooda final good that is investment;
an intermediate gooda final good that is investment;
a final good that is consumption expenditurean intermediate good;
a final good that is consumption expenditureItem 3 is _______ and item 4 is _______.
a final good that is consumption expenditure;
a final good that is investmenta final good that is consumption expenditure;
an intermediate gooda final good that is investment;
a final good that is investmenta final good that is investment;
an intermediate good
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