Question

Please match the hypothetical scenarios with the correct type of good.

a. Pierre produces cheese in France and ships it to his sister living in Canada, who then sells it in her local bakery.
b. In her capacity as an FBI agent, Jean purchases a new vehicle for use by the agency to track missing persons.
c. Wanda purchases six new sewing machines for her tailoring business, which she hopes will increase the number of custom alterations she can perform each week.

1. Consumption goods and services
2. Export goods and services
3. Government goods and services
4. Capital goods
5. Real Estate

Answer 1

a) Export goods & services; b) Government goods & services; c) Capital Goods

Step-by-step explanation:

Consumption Goods are used by consumers, for final consumption. Real Estate refers to land, property cases. There are no such illustrative cases.

Export goods & services are sent to foreign country for selling. Pierre produces cheese in France, for getting it sold in Canada. So, it illustrates case of goods export

Government goods & services are used by government officials for government goods & service purpose. FBI agent purchasing vehicle for tracking missing persons, illustrates case of government goods & services.

Capital Goods are investment goods, which increase the productive capacity of businesses. Wanda purchasing 6 new sewing machines for her tailoring business, is example of Capital Goods.