Question

Bob and cho iverson live in swarthmore, pa. cho's father, eric, lives in sweden. for each of the following transactions that occur in their lives, identify whether it is included in the calculation of u. s. gdp as part of consumption (c), investment (i), government purchases (g), exports (x), or imports (m). check all that apply.

a. the state of pennsylvania repaves highway pa 320, which goes through the center of swarthmore.
b. cho's father in sweden orders a bottle of vermont maple syrup from the producer's website.
c. bob's employer upgrades all of its computer systems using u. s.-made products.
d. cho gets a new video camera made in the united states.
e. bob buys a sweater made in guatemala

Answer 1

The answer is

A. Government Purchase

B. Exports

C. Investment

D. Consumption

E. Import

Step-by-step explanation:

A. Government Purchase - The government of pennsylvania spent money to repave highway pa 320,

B. Exports - Cho's father is not in the US, he is in Sweden. So he ordering from Sweden means US will export the bottle of vermont maple syrup to him

C. Investment - Bob's employer is in US. So the money spent to upgrade the systems is an investment because it will add value to its inventories (computers)

D. Consumption - Cho bought a new video camera. This is a consumer's consumption

E. Import - Bob is in US and the sweater will come from Guatemala (outside US). Goods coming from other countries into a country is an import.