Question

which of the following expenditures would increase the investment component of us gdp a. you buy...

which of the following expenditures would increase the investment component of us gdp

a. you buy a new book about the financial markets
b. you purchase a new car
c. all the other choices would increase the investment component of US gdp
d. ibm buys an office chair
e. you purchase 1000 shares of ibm stock
Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

(d ) IBM buys an office chair

It is component of investment in US GDP.

It will be considered as fixed asset and a component of gross domestic fixed capital formation.

Investment expdt has 2 components:

(i) Gross domestic fixed capital formation

it included fixed assets purchased by producer like machinery ,furniture ,land,bridge ,dam ,house etc

(ii) Inventory investment or change in stock

it includes semi finished goods ,finished but unsold goods etc

(a) & (b) will be considered as personal final consumption expdt as car and books are purchased by final consumer.

They will be personal final consumption expdt.

(e) will not be included while calculating GDP because sale and purchase of shares does not circulate the flow of goods and services in current year.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
To which component of the US GDP expenditure does each of the following belong to? (C,...
To which component of the US GDP expenditure does each of the following belong to? (C, I, G, NX, or none of the four) a) the purchase of a lottery ticket. b) a new car made in the US but not yet sold
21. Which of the following is not a short-term debt instrument? Group of answer choices commercial...
21. Which of the following is not a short-term debt instrument? Group of answer choices commercial paper common stock money market securities Treasury bills 22. Which of the following is a primary market transaction? Group of answer choices You sell 200 shares of IBM stock on the NYSE through your broker. You buy 200 shares of IBM stock from your brother. The trade is not made through a broker—you just give him cash and he gives you the stock. IBM...
Which COMPONENT(S) (if any) of U.S. GDP (consumption C, investment I, government spending G, and/or net...
Which COMPONENT(S) (if any) of U.S. GDP (consumption C, investment I, government spending G, and/or net exports NX) THIS YEAR would be affected and how (INCREASE or DECREASE) if: (e) A French citizen buys a new house in Miami beach and rents it to a Japanese citizen.   (f) You buy an old computer for your business.     (g) General Motors produces some cars but does not manage to sell them this year.     (h) Spirit Airlines buys a new Airbus...
In each of the following scenarios, calculate the total increase in US GDP this year caused...
In each of the following scenarios, calculate the total increase in US GDP this year caused directly by the given information An individual purchases an old used car from their friend for $6,000. They buy a new engine for the car for $1,000, replace the brakes for $500, and paint it for $200. They then sell the car for $10,000 A computer manufacturer in the US buys parts for its computer from Japan. The cost of these parts is $500....
‏____ 21. Which of the following statements is CORRECT? a. Hedge funds are legal in Europe...
‏____ 21. Which of the following statements is CORRECT? a. Hedge funds are legal in Europe and Asia, but they are not permitted to operate in the United States. b. Hedge funds have more in common with commercial banks than with any other type of financial institution. c. Hedge funds have more in common with investment banks than with any other type of financial institution. d. Hedge funds are legal in the United States, but they are not permitted to...
Which of the following would increase real GDP in the short run? 1 An increase in...
Which of the following would increase real GDP in the short run? 1 An increase in price level 2 An Increase in property tax 3 Building new public bridges 4 All proposed answer options are correct The aggregate supply curve shifts left if 1 the government increases sales taxes 2 there is a technological innovation allowing factories to produce goods more efficiently 3 None of the proposed answer options is correct 4 the government removes some environmental regulations that limit...
Which of the following would be included as investment in the GDP accounts? a. the government...
Which of the following would be included as investment in the GDP accounts? a. the government buys goods from another country b. someone buys stock in an American company c. a firm increases its capital stock d. All of the above are correct. 2. Scenario 26-3. Assume the following information for an imaginary, open economy. Consumption = $1,000; investment = $200; net exports = -$50; taxes = $230; private saving = $225; and national saving = $150. Refer to Scenario...
1. Which of the following would be considered a component of government expenditures? Group of answer...
1. Which of the following would be considered a component of government expenditures? Group of answer choices a. More than one of these options is correct b. Social security payments c. Interest paid on outstanding bonds d. Welfare payments e. Police salaries 2. Which of the following statements is true? Group of answer choices a. The government deficit tends to rise and fall with the business cycle b. When the government runs a surplus it means that its outlays are...
1. Which of the following is FALSE about GDP? Group of answer choices GDP is considered...
1. Which of the following is FALSE about GDP? Group of answer choices GDP is considered one of the most important stats of an economy GDP can be used to at least informally determine whether a country is in recession When a country’s economic stats are presented, the first stat is often GDP GDP was invented by Franklin D. Roosevelt just after World War 2 ended GDP is not exactly the same as GNP 2. Again, consider the market for...
Indicate what components of GDP (if any) each of the following transactions would affect. Check all...
Indicate what components of GDP (if any) each of the following transactions would affect. Check all that apply. Transaction Consumption Investment Government Purchases Net Exports Honda expands its factory in Ohio. Ford sells a Mustang from its inventory to the Martinez family. Aunt Polly buys a new air-conditioner from a domestic manufacturer. Texas hires public middle school teachers. Your parents pay an accountant to file their tax returns. You buy a new Toshiba computer. Uncle John receives a check from...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT