Economics of Macro Issues 7th Edition by Roger LeRoy Miller,Daniel Benjamin

Exercise 1

Would you categorize each of the following expenditures as intermediate goods, investment goods, or consumption goods: (i) a spare tire, (ii) surgery to repair a badly broken arm, (iii) a Botox injection to remove forehead wrinkles, (iv) voice lessons, and (v) expenditures on your college education? Explain your reasoning in each instance Would your answers to (iii) and (iv) change if you knew that the purchaser was a professional singer who made many public appearances? Why or why not?