Question: Which component of GDP will be affected by each of the following transactions involving Ford Motor Company? If you believe that none of the components

Which component of GDP will be affected by each of the following transactions involving Ford Motor Company? If you believe that none of the components of GDP will be affected by a transaction, briefly explain why.
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.

Step by Step Solution

3.57 Rating (175 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

a Consumption b None of the components of GDP will be ... View full answer

blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Document Format (1 attachment)

Word file Icon

1347-B-A-A-M-E(863).docx

120 KBs Word File

Students Have Also Explored These Related Micro Economics Questions!