Question

Please check answers, multiple boxes can be checked if needed

3. Categories of expenditures Felix and Janet Green live in Swarthmore, PA. Their son, Larry, owns his own plumbing business. 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. Transaction C I G X M Larry buys a new set of tools to use in his plumbing business. Felix's employer assigns him to provide consulting services to an Australian firm that's opening a manufacturing facility in China. Janet gets a haircut. The Federal Aviation Administration expands the runways at Philadelphia International Airport, which is just - - - - a few miles from Felix and Janet's house. Janet buys a new BMW, which was assembled in Germany.

Answer 1

1. Larry buys a new set of tools to use in his plumbing business.This is investment in the eyes of Larry and consumption is according to the economy.

2. Felix is been appointed to serve abroad and to work for other country which is export of services in the eyes of government.

3. Janet gets a haircut that is just a consumption and nothing else.

4. The extension of runway by Federal Aviation Administration is an  investment and government consumption expenditure on raw material is also there.

5. Purchase from a foreign company is import for us.