A Different Kind of Purchase
While economists are calculating the GDP, what do they
take into consideration? One thing is the purchase of goods and services.
They measure economic activity in four different areas: consumer purchases,
business purchases, government purchases, and national exports.
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1. |
Consumer
or household purchases are things people buy for their own
personal use. |
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2. |
Business
purchases are things producers or businesses buy to produce
other goods or services while trying to make a profit. |
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3. |
Government
purchases are goods or services bought by governments. This
can include national, state, or local sectors. |
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4. |
National
exports are anything one nation sells to another. |
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Which One?
Decide whether each purchase would be considered
a consumer purchase, business purchase, government purchase, or
a national export when figuring the GDP. For each of the items below,
click on the drop-down list and choose the best response.
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1. |
The
United States sells rice to China. |
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2. |
A woodworker
buys tools to make chairs to sell. |
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3. |
The president of the United States
buys a jet to travel to different political
events. |
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4. |
A home
owner buys a new refrigerator. |
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5. |
An
artist buys art supplies to create paintings to sell. |
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