Classify each of the following items as a final good or service or an intermediate good or service, and identify which is a component of consumption expenditure, investment, or government expenditure on goods and services. A. The purchase of a new aircraft for the vice dash president B. Upper A textbook bought by a student C. New cars bought by Hertz comma the car rental firm D. Packing boxes bought by Amazon

A. The purchase of a new aircraft for the vice dash president is final good that is  government expenditure.

B. Upper A textbook bought by a student is a final good that is consumption expenditure.

C. New cars bought by Hertz comma the car rental firm is a final good that is an investment.

D. Packing boxes bought by amazon is an intermediate goods

Explanation:

Final good or service is an item or service  that had been purchased or delivered to the final consumer. The consumer is not using it to produce another good in this case.

Intermediate good or service is an item or service that is produced by a company or firm and delivered to another company to serve as input in the production of another good or service.

Consumption expenditure includes household and individual spending on goods and services. This excludes money spent on purchasing new houses.

Government expenditure includes public sector spending and funding, such as money spent in the health sector and schools.

Investment is obtaining good that is not consumed immediately but is used in the creation of wealth.

A. The purchase of a new aircraft for the vice dash president is final good that is a government expenditure

The aircraft is not going to another firm so it is a final good going into the public sector.

B. Upper A textbook bought by a student is a final good that is consumption expenditure.

The upper a textbook is not a component to be used by another company, which makes it a final good. Also, consumption is for an individual so it a consumption expenditure.

C. New cars bought by Hertz comma the car rental firm is a final good that is an investment.

The cars purchased by Hertz are final product but it will be used for car rentals, this makes it an investment.

D. Packing boxes bought by amazon are intermediate goods

The packaging boxes will be used by Amazon to package one of their numerous goods, these are intermediate goods.

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