Use the information below to answer the following questions.
Fact 4.1.2
Classify each of the following items as a final good or an intermediate good, and identify which is a component of consumptio expenditure, investment, or government expenditure on goods and services:
Item 1.A DVD bought by a household Item 2.A new airplane bought by WestJet Item 3.Aluminum sheets bought by Boeing
Item 4.A new limousine for the prime minister
-Refer to Fact 4.1.2.Item 1 is _______ and item 2 is _______.

Question

Quizplus · Accepted Answer

Item 1, a DVD bought by a household, is a final good that is part of consumption expenditure because it is purchased for final use. Item 2, a new airplane bought by WestJet, is a final good that is part of investment because it is a capital good purchased by a business for long-term use.

Use the Information Below to Answer the Following Questions