Question Details

An example of ʺinvestmentʺ in the national income accounts is the purchase of



1) An example of ʺinvestmentʺ in the national income accounts is the purchase of
A) a new van by a potter, who packs it with his wares and travels to art shows.
B) 100 shares of Canadian stock on the New York Stock Exchange.
C) a 100-year-old house that was just put on the protected historic sites list in the year in
question.
D) a U.S. government bond.
2) In the national income accounts, the purchase of a new house counts as
A) consumption expenditure.
B) investment.
C) a transfer.
D) an addition to inventory.
3) All of the following are included in gross private domestic investment expenditure EXCEPT a
A) businessʹs purchase of a fleet of cars.
B) householdʹs purchase of a new house.
C) businessʹs purchase of another companyʹs stock.
D) a retail storeʹs purchase of shoes to add to its inventory.
4) In the national income accounts, government expenditure on goods and services refer to those
purchases made by
A) federal and state governments only.
B) the federal government only.
C) state and local governments only.
D) all levels of government.

5) In the national income accounts, government expenditure on goods and services exclude
A) transfer payments.
B) state and local government purchases.
C) local government purchases but include state government purchases.
D) spending on national defense.




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