1. Classify each of the items in List 1 as a final good or service or as...

Question:

1. Classify each of the items in List 1 as a final good or service or as an intermediate good or service and identify which is a component of consumption expenditure, investment, or government expenditure on goods and services.

LIST 1 Banking services bought by a student New cars bought by Hertz, the car rental firm Newsprint bought

2. Figure 1 shows the flows of expenditure and income on Lotus Island. In 2016, R was $10 billion; W was $30 billion; U was $12 billion; J was $15 billion; and Z was $3 billion. Calculate total expenditure and total income.

FIGURE 1 FACTOR MARKETS HOUSEHOLDS R GOVERNMENTS FIRMS FINANCIAL MARKETS GOODS MARKETS N REST OF WORLD