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Please help with all questions, thank you 1) Classify each of the following items as a final good or service or as an intermediate good
Please help with all questions, thank you
1) Classify each of the following items as a final good or service or as an intermediate good or service. Identify which is a component of consumption expenditure, investment, or government expenditure on goods and services. Briefly explain your answers. I. Cases of sugar bought by Dunkin' Donuts; II. New airplanes bought by Jet Blue; III. Ethel's purchase of a new camera, IV. New home bought by Warren Buffett. 2) Kim's 5-year-old son Johnny asks her what makes those "green papers she has in her pocketbook" into money and why his Pez candies are not money. Kim is unsure of the answer. Please explain to Kim what makes something money and the functions money perform. Also explain to her why packages of Pez candies do not serve as money. 3) Suppose that yesterday the U.S. dollar was trading on the foreign exchange market at 0.92 euros per U.S. dollar and today the U.S. dollar is trading at 0.89 euros per U.S. dollar. Which of the two currencies (the U.S. dollar or the euro) has appreciated and which has depreciated today? 4) Evaluate the following statement and fully explain why it is correct or incorrect. "The Budget Committee of the House of Representatives is the only part of government that plays a role in creating fiscal policy." 5) Lauren is a student who teaches golf on Sundays. In a year, she earns $30,000 after paying her taxes. At the beginning of 2015, Lauren owned $1,500 worth of books, DVDs, and golf clubs and she had $10,000 in a savings account at the bank. During 2015, the interest on her savings account was $400 and she spent a total of $17,700 on consumption goods and services. There was no change in the market values of her books, DVDs, and golf clubs I. How much did Lauren save in 2015? II. What was her wealth at the end of 2015? 6) Distinguish between Abbott, who has been out of a job for two weeks and has an interview for a new job in three days, and Costello, who retired five years ago and is enjoying the time flexibility he has, now that he is not workingStep by Step Solution
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