Question

When calculating GDP from the expenditure side, "actual consumption expenditures" includes

a)a tractor purchased by an Ontario farmer.

b)fees paid by Google Canada to a Toronto law firm.

c)robotic paint equipment purchased by Bombardier.

d)snow-plow equipment purchased by the City of Montreal.

e)Canadian fashion designs purchased by a Swiss department store.

Answer 1

ANSWER:

The correct answer is option b that is fees paid by Google Canada to a Toronto law firm as google canada is spending in terms of fees to a local firm in canada.

option a , c , d and e are not consumption expenditures. (when we calculate the gdp from the expenditure side)