Question

For each form of private spending, indicate whether it represents consumption or investment. Private Spending Consumption Investment Laundromats buying washing machines People buying washing machines Firms buying automobiles for delivery services Firms buying soft drinks for a holiday party For each form of government spending, indicate whether it represents consumption or investment. Government Spending Consumption Investment Building public housing Paying workers to administer government programs Building hospitals Buying military equipment

Answer 1

Answer:

Private Spending:  

• Firms purchasing PCs is an Investment as it will help raising their proficiency.  
• Firms purchasing soda pops is an utilization.  
• Firms assembling new industrial facilities is a speculation.  
• Individuals purchasing clothes washer is an utilization  

Government Spending:  

• Building Tunnels is a venture.  
• Purchasing Medical gear is an utilization.  
• Building streets is a venture.  
• Installment for Public Safety can be considered as Consumption just as Investment relying on the monetary situation however on significant helper it is an Investment.