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Societies choose what share of their resources to devote to consumption and what share to devote to investment

Economics Jun 06, 2021

Societies choose what share of their resources to devote to consumption and what share to devote to investment. Some of these decisions involve private spending; others involve government spending. 
For each form of private spending, indicate whether it represents consumption or investment. 
Private Spending Consumption Investment Firms buying machines 0 0 People buying dothes 0 0 Firms building new factories 0 0 People buying food 0 0 
For each form of government spending, indicate whether it represents consumption or investment. 
Government Spending Consumption Investment Payment for public safety employees 0 0 Building roads 0 0 Building hospitals 0 0 Buying medical equipment 0 0 

Expert Solution

For each form of private spending, indicate whether it represents consumption or investment. 

Private spending Consumption Investment
Firms buying machines   ?
People buying clothes ?  
Firms building new factories   ?
People buying food ?  

For each form of government spending, indicate whether it represents consumption or investment. 

Government Spending Consumption Investment
Payment for Public Safety Employees ?  
Building Roads   ?
Building Hospitals   ?
Buying Medical Equipment   ?

 

 

 

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