Use the Information Below to Answer the Following Questions

question 108

Multiple Choice

Use the information below to answer the following questions.
Fact 20.1.2
Classify each of the following items as a final good or an intermediate good, and identify which is a component of consumption 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 20.1.2. Item 1 is ________ and item 2 is ________.

• A)an intermediate good; a final good that is consumption expenditure
• B)a final good that is consumption expenditure; a final good that is investment
• C)a final good that is consumption expenditure; a final good that is consumption expenditure
• D)an intermediate good; a final good that is investment
• E)an intermediate good; an intermediate good

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Definitions:

Tracking Mouse

A technology or method used to monitor and analyze the movement and clicks of a mouse by a computer user, often to improve user experience or for research purposes.

Dynamically Continuous Innovation

Innovations that represent a significant change to an existing product or market but do not create new categories, often involving technological advancements.

Disrupts Consumers

Strategies or products that significantly alter consumer habits, expectations, or experiences in a market.

Continuous Innovation

The ongoing development and implementation of new ideas, products, or processes, aiming to sustain and enhance competitive advantage.