Question

Assign each of the following to a category of GDP. Assume products are made domestically unless indicated otherwise: You buy a car multiple choice 1 Consumption Investment Govt. Purchases Imports or Exports A bakery buys a new oven multiple choice 2 Consumption Investment Govt. Purchases Imports or Exports You get a haircut multiple choice 3 Consumption Investment Govt. Purchases Imports or Exports Your town buys a fire truck multiple choice 4 Consumption Investment Govt. Purchases Imports or Exports You buy shoes made in Thailand multiple choice 5 Consumption Investment Govt. Purchases Imports or Exports The Federal Government builds a bridge multiple choice 6 Consumption Investment Govt. Purchases Imports or Exports A private hospital buys a new MRI machine multiple choice 7 Consumption Investment Govt. Purchases Imports or Exports You stay in a hotel in Italy multiple choice 8 Consumption Investment Govt. Purchases Imports or Exports

Answer 1

Solution :

GDP stand for Gross Domestic Product. It is the measure of a national production and income of a country. It is the total produce of any country's products and services in a financial year that will boast its economy.

According to the question, assigning to the category of GDP are :

1. When we buy a car : --- Consumption

2. When a new oven is bought by a bakery : --- investment

3. When we get a haircut done : -- Consumption

4. Town buys a new fire truck :  --- Government purchase

5. When we buy a new pair shoe that is made in Thailand : --- Exports or Imports

6. A bridge build by the Federal Government : --- Government purchase

7. A MRI machine bought by a private hospital : --- Investment

8. When we stay in hotel that is in Italy : --- Imports or Exports