Which component of GDP will be affected by each of the following transactions involving Ford Motor Company?
Question:
a. You purchase a new Ford Escape hybrid from a Ford dealer.
b. You purchase a 2011 Ford Escape hybrid from a friend.
c. Ford purchases door handles for the Escape from an auto parts manufacturer in Indiana.
d. Ford produces 1,000 Escapes in a factory in Missouri and ships them to a car dealer in Shanghai, China.
e. Ford purchases new machine tools to use in its Missouri Escape factory.
f. The state of Missouri builds a new highway to help improve access to the Ford Escape plant.
Dealer
A dealer in the securities market is an individual or firm who stands ready and willing to buy a security for its own account (at its bid price) or sell from its own account (at its ask price). A dealer seeks to profit from the spread between the...
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