Question

Indicate which component of GDP will be affected by each of the following transactions involving the Ford Motor Company. a. You purchase a new Ford Escape Hybrid from a Ford dealer_________.b. You purchase a 2013​ (preowned) Ford Escape Hybrid from a friend. _________.c. Ford purchases door handles for the Escape from an auto parts manufacturer in Indiana. calculation ___________.d. Ford produces​ 1,000 Escapes in a factory in Missouri and ships them to a car dealer in​ Shanghai, China______.e. Ford purchases new machine tools to use in its Missouri Escape factory_______.f. The state of Missouri builds a new highway to help improve access to the Ford Escape plant__________.

Answer 1

Answer:

A) The new SUV will increase the CONSUMPTION expenditure

B) A used SUV is NOT INCLUDED

C) Car parts are intermediate goods, are NOT INCLUDED

D) Exported SUVs are included in NET EXPORT expenditure

E) New machinery is included as INVESTMENT expenditure

F) New highways and roads are included in GOVERNMENT expenditure