21.Whichofthefollowingitemsistheonetypeofhouseholdexpenditurethatiscategorizedasinvestmentratherthanconsumption? a.spendingoneducation b.thepurchaseofstocksandbonds c.thepurchaseofanewhouse d.thepurchaseofdurablegoodssuchasstovesandwashingmachines 22.WhichofthefollowingisincludedintheinvestmentcomponentofGDP? a.spendingtobuildnewhouses b.spendingtobuildnewfactories c.spendingonbusinessequipmentsuchasweldingequipment d.AlloftheaboveareincludedintheinvestmentcomponentofGDP. 23.WhichofthefollowingisincludedintheinvestmentcomponentofGDP? a.spendingonnewresidentialconstructionandspendingonstocksandbonds b.spendingonnewresidentialconstructionbutnotspendingonstocksandbonds c.spendingonstocksandbondsbutnotspendingonnewresidentialconstruction d.neitherspendingonstocksandbondsnorspendingonnewresidentialconstruction 24.WhichofthefollowingisincludedintheinvestmentcomponentofGDP? a.spendingonnewbusinessequipmentsuchaspowertoolsandspendingonstocksandbonds b.spendingonnewbusinessequipmentsuchaspowertoolsbutnotspendingonstocksandbonds c.spendingonstocksandbondsbutnotspendingonnewbusinessequipmentsuchaspowertools d.neitherspendingonnewbusinessequipmentsuchaspowertoolsnorspendingonstocksandbonds 25.WhichofthefollowingisincludedintheinvestmentcomponentofGDP? a.Elainepayshercollegetuitionbill. b.John’slawfirmbuyshimanewcomputer. c.LaurabuysabondthatMcDonald’ssellstoraisefunds. d.Alloftheabovearecorrect. 26.WhichofthefollowingisnotincludedintheinvestmentcomponentofGDP? a.Thepurchaseof100sharesofstock. b.Thepurchaseofa$1000bond. c.Afirm’spurchaseofausedvantousefordeliveries. d.NoneoftheaboveareincludedintheinvestmentcomponentofGDP. 27.TheCarters’oldestsonattendsBigStateUniversity.Heandhisparentspayallhisfeesandtuition.ThesepaymentscountinGDPas a.investment. b.governmentspending. c.consumptionofservices. d.consumptionofdurablegoods. 28.ConsidertwoitemsthatmightbeincludedinGDP:(1)theestimatedrentalvalueofowner-occupiedhousingand(2)purchasesofnewly-constructedhomes.HowarethesetwoitemsaccountedforwhenGDPiscalculated? a.Bothitem(1)anditem(2)areincludedintheconsumptioncomponentofGDP. b.Item(1)isincludedintheconsumptioncomponentofGDP,whileitem(2)isincludedintheinvestmentcomponentofGDP. c.Item(1)isincludedintheinvestmentcomponentofGDP,whileitem(2)isincludedintheconsumptioncomponentofGDP. d.Onlyitem(2)isincludedinGDP,anditisincludedintheinvestmentcomponent. 29.AU.S.publisherpurchasesnewcomputersthatweremanufacturedintheU.S.Thispurchasebyitselfmakes a.apositivecontributionbothtoinvestmentandtoGDP. b.apositivecontributionbothtoconsumptionandtoGDP. c.apositivecontributiontoGDP,butitdoesnotaffectinvestmentorconsumption. d.apositivecontributiontoinvestment,butitdoesnotaffectGDP. 30.AMinnesotafarmerbuysanewtractormadeinIowabyaGermancompany.Asaresult, a.U.S.investmentandGDPincrease,butGermanGDPisunaffected. b.U.S.investmentandGermanGDPincrease,butU.S.GDPisunaffected. c.U.S.investment,U.S.GDP,andGermanGDPareunaffectedbecausetractorsareintermediategoods. d.U.S.investment,U.S.GDP,andGermanGDPallincrease.