Reference no: EM131737125
Question: Classify the following as consumption, fixed business investment, residential construction, inventory investment, exports, imports, government purchases, intermediate goods, or none of the above.
(A) Student purchases PC to do problem set.
(B) Professor purchases PC workstation for class use.
(C) Student takes trip to Mexico for vacation.
(D) Professor takes trip to Mexico for consulting.
(E) Investor purchases 100 shares of Microsoft.
(F) Employee contributes to retirement plan.
(G) Student has lunch at McDonald's.
(H) Dean hosts reception at La Francais.
(I) Student pays tuition to Northwestern University.
(J) Student pays tuition to University of Illinois.
(K) Driver buys auto policy for $1,000; later that day has $10,000 accident.
(L) Japanese investor buys Van Gogh painting.
(M) GM buys tires to put on new cars.
(N) Same as above, but it buys them on December 20th and doesn't put them on the cars until January 15th.
(O) Consumer purchases used car for $5,000; the dealer bought it for $4,000.
(P) Caterpillar Corporation builds new factory.
(Q) Homeowner gets dishwasher repaired.
(R) Homeowner buys new dishwasher.
(S) Landlord replaces old dishwasher.
(T) Neighbor cuts lawn in return for baby-sitting.
(U) IRS demands $1,000 payment from neighbor for not reporting barter income: $500 is tax, $100 is interest, and $400 is penalty.
(V) Anti-smoking lawyer receives $1 billion to show smoking is bad for you.
(W) Lawyer purchases old Kennedy mansion in Palm Beach for $7 million.
(X) Lawyer tears house down, builds $20 million replacement.
(Y) Lawyer receives $2 million tax bill from Palm Beach County.
(Z) Lawyer pays another lawyer $100,000 to sue Palm Beach County.