Question

Place each of the following transactions in one of the four components of expenditure: consumption, investment, government purchases, and net exports. Apple sells a computer to a public school in Paris, Kentucky. Apple sells a computer to an accounting firm in Paris, Illinois. Apple sells a computer to a bakery in Paris, France. Apple sells a computer to Paris Hilton. Apple builds a computer to be sold next year

Answer 1

Answer:

Government purchase;

Net export;

Investment;

Consumption;

Investment.

Explanation:

Government purchases refer to expenditures on goods and services by federal, state, and local governments.

''Apple sells a computer to a public school in Paris, Kentucky'' comes under a government purchase.

Net export is the difference between the value of a nation's exports and imports in monetary terms.

''Apple sells a computer to an accounting firm in Paris, Illinois'' comes under a net export.

An investment is a monetary asset purchased with an objective that it will act as a source of income in the future.

'' Apple sells a computer to a bakery in Paris, France'' and ''Apple builds a computer to be sold next year'' come under-investment.

Consumption refers to the use of goods and services in an economy.

''Apple sells a computer to Paris Hilton'' comes under consumption