Societies choose what share of their resources to devote to consumption and what share to devote to investment. Some of these decisions involve private spending; others involve government spending. For each form of private spending, indicate whether it represents consumption or investment.
Private Spending Consumption Investment
Firms buying computers
People buying houses
People buying newspapers
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
Buying military equipment
Building airports
Paying salary to public elementary school teachers
Building tunnels